Coinbase and Kraken plans to re-allow XRP trading following Thursday's court ruling. Despite meeting the definition of security for institutional sales, U.S. District Judge Analisa Torres decided that Ripple's XRP is not a security when exchanged on a secondary exchange, handing Ripple a partial victory in a litigation that lasted through 2020.
After the verdict was announced, Coinbase Chief Legal Officer Paul Grewal tweeted, “It’s time to relist XRP.” Coinbase announced on Twitter that XRP trading is “expected to launch later in the day, once liquidity conditions are met.”
Coinbase's decision comes as other exchanges, including Gemini, are considering whether to list XRP again. Gemini said Thursday that it is “evaluating XRP for listing in both spot and derivatives trading.” The XRP market has surged since the court ruling, with the price of the digital asset up more than 70% in the past day.
In Thursday's ruling, the court ruled that "XRP as a digital token is not, per se, a 'contract, transaction or system' that embodies Howey's requirements for investment contracts."
However, the court also ruled that a sale to institutional investors would not have been possible because "a reasonable investor in institutional positions would have purchased XRP in the hope that it would benefit from Ripple's efforts." also ruled that it was different.
Kraken also plans to offer XRP to US traders again.
In a blog post, the exchange said it would allow trading and instant purchases through the Kraken app, provided liquidity conditions are met. It trades with all fiat currency pairs as well as ETH, BTC, and USDT.
Meanwhile, a recent court ruling in favor of Ripple Labs has sparked a wave of scams targeting investors. Ripple Chief Technology Officer David Schwartz issued a warning, shedding light on scammers who abuse positive news to trick users.
What is it and how is it done?
They typically create fake Twitter accounts impersonating Ripple executives and employees. Through these accounts, they promote bogus giveaways and airdrops with the goal of tricking investors into revealing their personal information and cryptocurrency holdings. In some cases, scammers create deceptive websites that mimic Ripple's official website. Unsuspecting users may be asked to enter credentials or seed phrases on these websites in order to participate in bogus sweepstakes.
