XRP set for rally after Coinbase listing in New York

• Coinbase's Chief Legal Officer announced the listing of XRP for its New York clients.
• XRP was initially removed from the exchange in January 2021 due to an SEC lawsuit on claims of the asset breaking securities regulation.
• XRP could see a rally as the move should renew investors' optimism and confidence in the digital asset.

XRP is among trending cryptocurrencies on Thursday after Coinbase (COIN) Chief Legal Officer Paul Grewal announced that the crypto exchange has relisted the digital token for its clients in New York. Coinbase removed the token across its US markets in January 2021 due to a lawsuit that the Securities & Exchange Commission (SEC) filed against XRP's parent company, Ripple.

Also read: Ripple prepares for SEC lawsuit outcome, XRP climbs past $0.51

Coinbase relists XRP for New York customers

In an X post on Thursday, Coinbase's Chief Legal Officer, Paul Grewal, announced that the exchange has heard the voices of its users and has decided to bring back XRP trading to its New York clients. 

XRP was removed from Coinbase in January 2021 following a lawsuit from the SEC against Ripple Labs, the company behind the XRP token. The lawsuit claimed that the token operated as an unregistered security used to fund the company's platform in 2013. The aftermath led to a long battle between Ripple and the SEC that has yet to be fully concluded.

Read more: US House of Reps passes bill aiming to regulate cryptocurrencies

With the lawsuit in place, Coinbase and other crypto exchanges were forced to delist XRP from their US markets, which caused a sharp decline in the token's price. 

Coinbase's relisting of XRP follows the House of Representatives' passing of the FIT21 bill on Wednesday. The bill, which received strong bipartisan support, will provide clear rules to guide the operation of the crypto industry in America.

Coinbase was also subject to a lawsuit from the SEC in June. The regulator claimed that the crypto exchange broke securities laws by allowing unregistered sales of securities to the general public.

Also read: XRP stays above $0.50 while Ripple backs research on new frontiers in blockchain technology

XRP could see a rally as Coinbase's move may renew investors' optimism and confidence in the asset. The battle between Ripple and the SEC might also see a rapid conclusion since Ripple was actively involved in pushing the FIT21 bill to address the state of digital assets.

XRP is down 0.09% on Thursday, trading at $0.53 at the time of writing.