The future of XRP on major U.S. crypto exchanges may be shifting as new statements from Coinbase’s leadership suggest a potential relisting of the digital asset. Paul Grewal, Chief Legal Officer at Coinbase, recently indicated that XRP could return to the platform depending on the outcome of the ongoing Ripple vs. SEC lawsuit. This long-standing legal battle has had far-reaching implications for the crypto industry, particularly in defining how digital assets are classified under U.S. securities law.
With a ruling potentially imminent, market participants are closely watching how regulatory clarity might reshape exchange listings and investor access to XRP.
The Ripple vs. SEC Case: A Turning Point for Crypto Regulation
Since December 2020, Ripple Labs has been engaged in a high-profile legal dispute with the U.S. Securities and Exchange Commission (SEC), which alleges that the company conducted an unregistered securities offering by selling over $1.3 billion worth of XRP tokens. Ripple has consistently argued that XRP is a currency or commodity—like Bitcoin or Ethereum—not a security, and therefore falls outside the SEC’s jurisdiction.
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This case has become a benchmark for the broader crypto industry, influencing how other projects structure their token offerings and how exchanges evaluate listing eligibility. The outcome could set a precedent for how decentralized cryptocurrencies are treated under federal law.
In July 2023, a partial victory for Ripple came when Judge Analisa Torres ruled that XRP sales to retail investors via exchanges did not constitute securities offerings. However, institutional sales were deemed to have violated securities laws. This nuanced decision opened the door for renewed discussion about XRP's status and its potential return to platforms like Coinbase, which delisted the token in January 2021 amid regulatory uncertainty.
Coinbase’s Stance on XRP Relisting
Paul Grewal’s recent appearance on the Thinking Crypto podcast highlighted Coinbase’s cautious but open approach to reevaluating XRP’s listing status. As a publicly traded company, Coinbase must navigate complex regulatory landscapes carefully to avoid legal exposure.
Grewal emphasized that any decision to relist XRP would depend heavily on the final court ruling’s specifics—particularly the judge’s reasoning and whether it provides sufficient regulatory clarity.
“So a lot is going to depend on the particulars of that court ruling. I know that’s not going to be terribly satisfying to some, but we do have a responsibility as a publicly listed company to tread carefully in this area and with respect to any token that’s a subject of federal court litigation.”
This measured stance reflects both compliance obligations and strategic positioning. Relisting XRP without clear regulatory approval could expose Coinbase to legal risk, but failing to act after a favorable ruling could alienate users and limit trading volume.
What Factors Will Influence XRP’s Return?
Several key factors will determine whether XRP makes its way back onto Coinbase:
- Finality of the Court Ruling: While partial rulings have been issued, a final judgment or settlement is needed before exchanges can confidently reassess listing policies.
- Regulatory Clarity: Clear guidance from the court on whether XRP qualifies as a security will be essential for compliance teams at major platforms.
- Market Demand: Despite being delisted in the U.S., XRP remains one of the most widely held and traded digital assets globally, indicating strong demand.
- Competitive Landscape: Other international exchanges continue to list XRP, putting pressure on U.S.-based platforms to remain competitive if regulations allow.
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Coinbase has previously relisted tokens after favorable regulatory developments—for example, when the SEC dropped charges against Cardano (ADA) and other tokens in past enforcement actions. This precedent suggests that if the Ripple case concludes with XRP deemed non-security in public trading contexts, a relisting becomes increasingly likely.
Implications for the Crypto Ecosystem
A favorable resolution for Ripple—and subsequent relisting of XRP on Coinbase—could have ripple effects across the digital asset space:
- Increased Institutional Confidence: Clearer regulatory boundaries may encourage more traditional financial players to engage with crypto.
- Enhanced Liquidity: Reintroducing XRP to one of the largest U.S. exchanges would significantly boost trading volume and market depth.
- Legal Precedent Setting: The case could influence future SEC actions and provide guidance for other blockchain projects facing similar scrutiny.
Moreover, it may prompt a broader review of how digital assets are evaluated under the Howey Test—the legal framework used to determine whether an asset qualifies as a security.
Frequently Asked Questions (FAQ)
Q: Why was XRP delisted from Coinbase in 2021?
A: Coinbase suspended trading of XRP in January 2021 following the SEC’s lawsuit alleging that Ripple conducted an unregistered securities offering through XRP sales.
Q: Has the court ruled that XRP is not a security?
A: In a partial summary judgment, the court found that certain sales of XRP—particularly those made on public exchanges to retail investors—did not meet the definition of a security. However, institutional sales were deemed to violate securities laws.
Q: Will XRP definitely return to Coinbase?
A: Nothing is guaranteed yet. According to Coinbase’s legal chief, relisting depends on the final court decision and whether it provides sufficient regulatory clarity.
Q: How does this affect XRP’s price?
A: While price movements are influenced by many factors, positive legal developments have historically led to short-term price increases due to renewed investor confidence and exchange interest.
Q: Are there other U.S. exchanges considering relisting XRP?
A: While Coinbase is one of the most watched, other U.S.-based platforms may follow suit if regulatory conditions improve and compliance risks decrease.
Q: What happens next in the Ripple vs. SEC case?
A: The case is moving toward resolution, with ongoing discussions about remedies for the institutional sales ruled as unregistered securities. A final judgment or settlement could come in 2025.
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Conclusion
The possibility of XRP being relisted on Coinbase marks a pivotal moment not just for Ripple supporters, but for the entire cryptocurrency ecosystem in the United States. As regulatory clarity emerges from the Ripple vs. SEC case, digital asset platforms are poised to reassess their listing strategies based on legal precedents rather than uncertainty.
While no timeline has been confirmed, Paul Grewal’s comments signal that Coinbase is actively monitoring the situation and remains open to relisting XRP if conditions allow. For investors, traders, and developers alike, this represents a potential step toward a more transparent, compliant, and inclusive crypto market.
As the final chapter of this legal saga unfolds, all eyes will be on Washington—and on Wall Street—to see how policy shapes innovation in the digital age.
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