The momentum behind XRP relisting on Coinbase has intensified following a significant legal win for the cryptocurrency exchange. As the broader digital asset community watches closely, recent court developments are reigniting hopes that one of the top 10 cryptocurrencies by market cap could soon return to one of the largest U.S.-based trading platforms.
Coinbase Wins Key Legal Ruling
In a landmark decision, United States District Judge Paul Engelmayer dismissed a class-action lawsuit filed against Coinbase and its CEO, Brian Armstrong. The plaintiffs—customers of the exchange—claimed that Coinbase had sold unregistered securities and failed to register as a broker-dealer, allegations that could have had sweeping implications for how crypto exchanges operate in the U.S.
However, Judge Engelmayer ruled in favor of Coinbase, citing inconsistencies between the original complaint and the amended version submitted in March 2022. This dismissal is being seen as a major validation of Coinbase’s operational model, particularly its assertion that it does not hold title to customer assets.
Paul Grewal, Chief Legal Officer at Coinbase, welcomed the decision, stating:
“We appreciate the federal court’s careful consideration and affirmation of what our User Agreement makes abundantly clear: Coinbase does not hold title to customer assets.”
This legal clarity strengthens Coinbase’s position not only in defending its current practices but also potentially paves the way for expanding its asset listings—especially controversial ones like XRP.
👉 Discover how regulatory clarity is reshaping crypto exchange strategies in 2025.
XRP Community Pushes for Relisting
Since the ruling, members of the XRP community have amplified their calls for Coinbase to reinstate trading of the token. Social media platforms, particularly Twitter (now X), have seen a surge in activity under hashtags like #RelistXRP, with users urging the exchange to act swiftly.
One user, Raff (@onlymikeraff), directly questioned pro-Ripple attorney Jeremy Hogan on whether the recent court outcome reduces legal risk for Coinbase if it chooses to relist XRP:
“@attorneyjeremy1 shouldn't this eliminate any exposure that Coinbase would have if they were to relist $XRP? So why not relist and pick up US trading volume/fees of a top 10 asset?”
Although no public response has been issued by Hogan at the time of writing, the underlying sentiment is clear: if Coinbase isn’t liable for selling unregistered securities under these circumstances, then relisting XRP may carry less regulatory risk than previously assumed.
Why Was XRP Delisted in the First Place?
The delisting of XRP from major U.S. exchanges—including Coinbase—dates back to December 2020, when the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs. The SEC alleged that Ripple conducted an unregistered securities offering worth over $1.3 billion through the sale of XRP.
In response, numerous exchanges removed XRP from their platforms to avoid potential legal exposure. While some international exchanges continued trading, U.S. platforms largely suspended access, significantly limiting liquidity and accessibility for American investors.
However, recent judicial interpretations are beginning to shift the landscape.
Legal Precedents Favoring Secondary Market Sales
A pivotal development occurred this week in another high-profile case—SEC vs. LBRY—where attorney John Deaton successfully petitioned the court for clarification on secondary market transactions.
While the SEC won its case against LBRY, the court initially did not clearly distinguish between primary and secondary token sales. Deaton, representing tech journalist Naomi Brockwell as amicus curiae, urged the judge to clarify that his November 7 ruling did not extend to secondary market trading of LBRY Credits (LBC).
The judge agreed and confirmed he has no intention of issuing a permanent injunction against secondary market sales of LBC tokens.
👉 See how evolving court rulings are redefining crypto compliance standards globally.
This precedent carries strong implications for XRP, especially since a significant portion of its trading volume occurs on secondary markets—exactly the kind of transactions now being legally distinguished from initial securities offerings.
What This Means for XRP and Coinbase
The convergence of these legal outcomes creates a compelling argument for Coinbase to reconsider its stance on XRP:
- The dismissal of the class-action lawsuit reinforces that exchanges may not be treated as issuers or broker-dealers simply by listing tokens.
- Judicial recognition of secondary market distinctions weakens the SEC’s broad application of securities laws to all token trades.
- XRP remains a top-tier digital asset with high demand, particularly in the U.S., where access remains restricted.
Relisting XRP could allow Coinbase to capture substantial trading volume and fees while aligning with growing legal clarity. Moreover, failure to act might risk losing competitive edge to offshore platforms that already support XRP trading.
Core Keywords Driving This Narrative:
- XRP relisting
- Coinbase legal victory
- SEC vs Ripple
- crypto regulation
- secondary market sales
- digital asset compliance
- XRP community
- crypto exchange listing
These keywords reflect both user search intent and the evolving regulatory discourse shaping the future of crypto in America.
Frequently Asked Questions (FAQ)
Q: Why did Coinbase delist XRP in 2020?
A: Coinbase removed XRP following the SEC's lawsuit against Ripple, which alleged that XRP was an unregistered security. To mitigate legal risk, many U.S. exchanges suspended trading.
Q: Does the recent court ruling mean XRP is no longer a security?
A: Not definitively. However, court decisions are increasingly distinguishing between primary offerings (which may be securities) and secondary market trades (which may not). This distinction reduces liability for exchanges listing tokens like XRP.
Q: Can Coinbase relist XRP without facing legal action?
A: While no outcome is guaranteed, the recent dismissal of the class-action lawsuit and evolving judicial interpretations suggest that relisting XRP carries significantly lower legal risk today than in 2020.
Q: Has Ripple won its case against the SEC?
A: Not entirely. In July 2023, a judge ruled that XRP itself is not inherently a security, but that certain sales—particularly institutional sales—could qualify as unregistered securities offerings. The case continues on specific claims.
Q: Will other U.S. exchanges follow if Coinbase relists XRP?
A: It’s likely. Coinbase is often viewed as a bellwether for regulatory compliance among major U.S. crypto platforms. A relisting could trigger similar moves by Kraken, Gemini, and others.
Q: How can I trade XRP in the U.S. right now?
A: Direct trading on major domestic exchanges remains limited. However, some decentralized exchanges (DEXs) and international platforms offer access, though users should conduct thorough due diligence on compliance and security.
👉 Explore secure ways to access top digital assets with evolving regulatory support.
Final Outlook
The legal winds are shifting in favor of greater clarity and fairness in crypto regulation. With Coinbase’s recent courtroom win and growing judicial recognition of secondary market rights, the pressure is mounting for XRP to return to mainstream U.S. exchanges.
For Coinbase, relisting XRP isn’t just about meeting community demand—it’s a strategic opportunity to lead in an era where regulatory understanding is maturing. As more courts draw lines between issuance and trading, platforms that act decisively may gain both market share and trust.
The XRP community isn’t backing down. And with each favorable ruling, their message grows louder: It’s time to relist XRP.