The cryptocurrency world is buzzing following a pivotal legal development that has reshaped the regulatory landscape for digital assets in the United States. In a landmark decision, a federal judge ruled that XRP, the native token of Ripple Labs, is not inherently a security when sold on public exchanges. This verdict has triggered a domino effect across major crypto platforms, with Coinbase and Gemini leading the charge in relisting XRP—marking a turning point for investor confidence and market accessibility.
The SEC vs. Ripple: A Legal Turning Point
For years, the U.S. Securities and Exchange Commission (SEC) maintained that Ripple had conducted an unregistered securities offering by selling XRP. The lawsuit, filed in December 2020, cast uncertainty over the token’s legal status and led many exchanges to delist XRP to avoid regulatory risk.
However, on July 13, 2023, Judge Analisa Torres of the U.S. District Court for the Southern District of New York delivered a partial summary judgment in favor of Ripple. She determined that XRP is not a security when traded on public exchanges, distinguishing between institutional sales (which may still be subject to securities laws) and open-market transactions.
This ruling has provided much-needed clarity, establishing a critical precedent for how digital assets are classified under U.S. law—especially those distributed widely to retail investors.
👉 Discover how major exchanges are responding to this regulatory shift.
Major Exchanges Resume XRP Trading
With regulatory fears easing, leading crypto exchanges have swiftly moved to reintroduce XRP trading pairs.
Coinbase Re-Enables XRP Support
Coinbase, one of the largest regulated cryptocurrency exchanges in the U.S., announced it would resume trading for XRP across multiple currency pairs. Users can now trade XRP/USD, XRP/USDT, and XRP/EUR, with availability rolling out in phases based on liquidity conditions.
The exchange emphasized caution, warning users not to send XRP to unsupported networks or risk permanent loss of funds. This relisting signals strong confidence in XRP’s compliant status and reflects Coinbase’s commitment to expanding its asset offerings in line with evolving regulations.
Gemini Follows Suit with Full Spot and Derivatives Listings
Gemini, known for its stringent compliance standards, also announced support for spot and derivatives trading of XRP. Given Gemini’s reputation for regulatory prudence, this move adds significant credibility to XRP’s standing in the eyes of institutional investors and traditional finance players.
Their decision could inspire other cautious platforms to reconsider their stance on previously delisted tokens, potentially unlocking new liquidity and adoption channels.
iTrustCapital Brings XRP Back to Retirement Accounts
Beyond spot exchanges, iTrustCapital—a leading self-directed IRA platform for alternative investments—has also relisted XRP. This is particularly significant because it opens the door for retirement investors to include XRP in their portfolios, signaling growing mainstream acceptance.
The company cited "increased clarity" around XRP’s legal status as the driving force behind its decision, highlighting how judicial rulings can directly impact product offerings in fintech and wealth management.
Why This Ruling Matters Beyond XRP
The Ripple vs. SEC case isn’t just about one token—it’s about defining the future of crypto regulation in America.
Judge Torres’ ruling applied the Howey Test, a decades-old framework used to determine whether an asset qualifies as an investment contract (i.e., a security). Her conclusion? While certain sales of XRP—particularly private placements to institutions—might meet the criteria, public exchange trades do not.
This distinction creates a clear boundary between different types of token distribution models and sets a precedent that could protect other decentralized projects from overreach.
As Brad Garlinghouse, CEO of Ripple, stated:
“We said in Dec 2020 that we were on the right side of the law, and will be on the right side of history. Thankful to everyone who helped us get to today’s decision – one that is for all crypto innovation in the US. More to come.”
His message underscores a broader industry sentiment: clear regulation fosters innovation, rather than stifling it.
👉 See how regulatory clarity is fueling the next wave of crypto adoption.
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Frequently Asked Questions (FAQ)
Q: Is XRP officially classified as a security now?
A: No. The court ruled that XRP is not a security when sold on public exchanges. However, certain institutional sales may still fall under securities laws. The ruling differentiates between distribution methods, not the token itself.
Q: Can I trade XRP on Coinbase today?
A: Yes. Coinbase has resumed trading for XRP/USD, XRP/USDT, and XRP/EUR pairs. Availability may vary slightly depending on your region and account verification status.
Q: Does the Ripple ruling affect other cryptocurrencies?
A: While not legally binding on other cases, this decision sets a powerful precedent. It suggests that widely distributed tokens traded on exchanges may not automatically qualify as securities—potentially benefiting many projects facing similar scrutiny.
Q: Why did Gemini decide to list XRP again?
A: Gemini prioritizes regulatory compliance. Their relisting indicates they believe current legal clarity reduces risk, making XRP suitable for both retail and institutional clients.
Q: Can I hold XRP in my retirement account?
A: Yes. Platforms like iTrustCapital now support XRP in self-directed IRAs, allowing investors to include it in tax-advantaged retirement portfolios.
Q: What’s next for Ripple after this ruling?
A: Ripple plans to expand its global payments network using XRP and continue advocating for balanced crypto regulation in the U.S. The company also aims to strengthen partnerships with financial institutions leveraging blockchain technology.
A New Chapter for Digital Assets
The Ripple victory marks more than just a win for one company—it represents progress toward a clearer, more innovation-friendly regulatory environment in the U.S. As major platforms like Coinbase and Gemini restore XRP trading, investor confidence is rebounding, and market dynamics are shifting.
For developers, entrepreneurs, and investors alike, this moment offers hope that thoughtful legal frameworks can coexist with technological advancement.
👉 Stay ahead of the curve—explore how evolving regulations are shaping crypto's future.
With increased institutional participation, expanding use cases in cross-border payments, and growing clarity from courts and regulators, XRP—and the broader crypto ecosystem—may be entering a new era of legitimacy and growth.