Paul Grewal assured users that the exchange cooperates with supervisory authorities in the matter of compliance with the requirements of state legislation on the storage of customer assets:
"XRP trading on Coinbase is available again in New York. We have heard you and started working in close partnership with the state. And now we can report it — we are back."
After the U.S. Securities and Exchange Commission (SEC) lawsuit against Ripple in 2020, XRP remained an asset under criticism and scrutiny from regulators and centralized exchanges.
A number of platforms such as Bittrex and Binance.US XRP was excluded from the listing after the SEC accused Ripple Labs of selling unregistered securities. But then they changed their position, re-listing the crypto asset after judge Analisa Torres of the Southern District of New York ruled that secondary sales of XRP are not sales of securities.
However, despite the court's decision and the re-listing of the token on U.S. exchanges, XRP continued to face regulatory hurdles in New York. In the fall of 2023, the New York Department of Financial Services (NYDFS) excluded Ripple Labs from the "green list" of companies that are allowed to store customer assets, which forced Coinbase to suspend XRP trading for New Yorkers.
Earlier, the US Supreme Court ruled against the Coinbase exchange, ruling that the class action for the Dogecoin 2021 lottery is subject to review by a court of general jurisdiction.