The future of XRP trading on one of the largest U.S.-based cryptocurrency exchanges, Coinbase, may hinge on the outcome of Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). While no definitive decision has been made, Coinbase’s Chief Legal Officer (CLO), Paul Grewal, recently indicated that relisting XRP is a possibility—if key legal conditions are met.
This development has reignited interest among crypto investors and XRP holders who have long awaited clarity on the token’s regulatory status and exchange availability.
Factors Influencing XRP Relisting on Coinbase
According to Grewal, who spoke during an interview with the crypto-focused YouTube podcast Thinking Crypto, Coinbase will not make a hasty decision. Instead, the exchange will carefully evaluate three critical factors before considering the return of XRP to its trading platform.
First, the legal reasoning behind any court ruling in favor of Ripple must be sound and grounded in clear regulatory interpretation. Second, the basis of the judgment—whether it hinges on jurisdictional technicalities or broader definitions of securities—will heavily influence Coinbase’s risk assessment. Third, the exchange will analyze the likelihood of appeal outcomes, particularly whether a favorable ruling for Ripple could be overturned or upheld in higher courts.
“We have a responsibility as a publicly listed company to act with due diligence, especially when dealing with assets involved in active federal litigation,” Grewal emphasized.
This cautious stance reflects Coinbase’s regulatory compliance strategy and its efforts to avoid potential legal exposure in an evolving and often ambiguous regulatory landscape.
👉 Discover how major exchanges assess regulatory risks before listing digital assets.
Why Was XRP Suspended on Coinbase?
XRP trading was suspended on Coinbase on December 28, 2020, just two days after the SEC filed a lawsuit against Ripple Labs, accusing the company of conducting an unregistered securities offering worth $1.3 billion through the sale of XRP.
Although XRP remains visible on the platform for wallet balance tracking, users have been unable to buy, sell, or trade the asset for over three years. This suspension mirrored actions taken by several other U.S. exchanges at the time, including Kraken and Bittrex, in response to regulatory uncertainty.
Despite Ripple winning a partial summary judgment in July 2023—where the court ruled that XRP sales on public exchanges did not constitute securities offerings—many platforms have remained hesitant to relist the token without clearer regulatory guidance.
Grewal Praises Ripple’s Legal Strategy
During the podcast interview, Grewal expressed strong support for Ripple’s legal defense. He revealed that Coinbase filed an amicus brief in favor of Ripple in 2022, signaling institutional backing from a major exchange.
“I was completely persuaded by Ripple’s arguments,” Grewal stated. “Their defense highlights significant flaws in the SEC’s approach to defining digital assets as securities.”
He further criticized the SEC’s inconsistent enforcement, noting that the agency’s broad interpretation of securities law could stifle innovation and create uncertainty across the entire crypto ecosystem.
Grewal also predicted that the case would likely continue beyond the initial ruling due to inevitable appeals. “Whichever side loses will almost certainly appeal,” he said. “This means we could be looking at years of continued legal proceedings.”
Coinbase’s Own Regulatory Challenges
Coinbase is no stranger to regulatory scrutiny. The SEC has also targeted Coinbase, accusing it of listing unregistered securities such as Civic (CVC) and district0x (DNT). In response, the exchange delisted several tokens to mitigate legal risks.
These actions underscore a broader pattern: U.S. exchanges are walking a tightrope between innovation and compliance. Relisting XRP would require Coinbase to be confident not only in Ripple’s legal victory but also in the stability and enforceability of that victory.
If Ripple ultimately prevails and XRP is definitively classified as a non-security, it could set a precedent that reshapes how digital assets are regulated across the United States.
👉 See how leading platforms navigate complex regulatory environments to protect user access.
Implications for the Crypto Industry
The Ripple vs. SEC case is widely seen as a watershed moment for cryptocurrency regulation. A favorable ruling for Ripple could:
- Clarify the legal status of other utility tokens.
- Limit the SEC’s authority to classify widely used cryptocurrencies as securities.
- Encourage innovation and investment in blockchain projects based in the U.S.
Conversely, a win for the SEC could lead to stricter oversight, more delistings, and reduced liquidity for many digital assets.
For Coinbase, relisting XRP wouldn’t just be a business decision—it would be a strategic signal about regulatory confidence and market direction.
Frequently Asked Questions (FAQ)
Will Coinbase definitely relist XRP if Ripple wins?
Not necessarily. While a Ripple victory increases the likelihood, Coinbase will still assess the specifics of the ruling, including its legal reasoning and potential for appeal, before making any final decision.
Has any major U.S. exchange relisted XRP?
As of now, no major U.S.-based exchange has fully relisted XRP for trading. However, some international platforms continue to support XRP markets.
Why does the SEC consider XRP a security?
The SEC argues that Ripple conducted an unregistered securities offering by selling XRP to raise capital. Ripple counters that XRP functions as a currency or utility token, not an investment contract.
How does Coinbase decide which tokens to list?
Coinbase evaluates tokens based on legal compliance, market demand, security audits, and regulatory clarity. Assets involved in litigation face higher scrutiny.
Could a Ripple win lead to more crypto innovation in the U.S.?
Yes. A clear legal framework affirming that certain tokens aren’t securities could encourage startups to build and launch projects in the U.S., rather than moving overseas to avoid regulatory risk.
What happens next in the Ripple vs. SEC case?
The court is expected to issue final rulings on remaining issues, including penalties and injunctions. Either party may appeal, meaning legal resolution could extend into 2025 or beyond.
👉 Stay updated on global crypto regulations and exchange listing trends.
Final Outlook
While there is no timeline for XRP’s return to Coinbase, Paul Grewal’s comments offer a glimmer of hope for supporters. The exchange remains open to relisting—but only when legal risks are minimized and regulatory clarity is achieved.
For investors and developers alike, the Ripple case represents more than just one token’s fate. It’s about defining the future of digital asset regulation in America.
As courts deliberate and exchanges watch closely, one thing is clear: the decisions made today will shape crypto markets for years to come.