XRP News Today: Binance Maintains XRP Trading Despite SEC Lawsuit

Binance founder Changpeng Zhao, commonly known as CZ, has confirmed that the exchange never delisted XRP during Ripple’s legal battle with the US Securities and Exchange Commission (SEC). This revelation came in response to renewed public interest following recent developments in Ripple’s lawsuit. CZ clarified his stance on the social media platform X, stating unequivocally that Binance continued to support XRP trading throughout the prolonged legal fight.

The SEC initiated legal action against Ripple in December 2020, alleging that the sale of XRP constituted an unregistered securities offering. In response, many prominent US-based crypto exchanges, including Coinbase, Bittrex, Kraken, Bitstamp, and eToro, halted or delisted XRP trading to avoid potential regulatory repercussions. However, Binance, operating under a different regulatory framework, was not subject to the same pressures and continued to list XRP, allowing users worldwide to trade the token despite the ongoing litigation.

CZ’s decision to maintain XRP on Binance was driven by several factors. XRP was one of the most traded coins on the platform, contributing significantly to trading volume and fee revenue. Delisting XRP would have negatively impacted both traders and the exchange. By keeping XRP available, Binance affirmed its position as a leading global destination for XRP spot trading, even as regulatory uncertainties persisted.

CZ’s decision to keep XRP listed on Binance—and the rationale behind supporting it—went beyond geographic considerations. XRP was one of the primary traded coins on Binance, giving them a large trading volume and fee revenue. According to one Binance analyst, XRP was still a highly sought-after asset, and the decision to delist XRP would have adversely affected both its traders and the exchange. However, Mr Powell said there was no reason to eliminate it.

An industry observer said that by ensuring customers can buy, sell, and hold XRP, Binance had affirmed its position as “no. 1 global XRP spot trading destination” despite bureaucrats in the US not determining whether the token is a security. The observer noted that it was a calculated risk that ended up giving Binance a competitive advantage, especially after Ripple’s partial legal victory in July 2023.

That ruling, issued by US District Judge Analisa Torres, found that programmatic sales of XRP via public exchanges did not constitute securities sales, a victory for Ripple and the broader cryptocurrency industry. Since that ruling, some exchanges have tentatively relisted XRP.

Ripple’s legal challenges have not deterred the company from expanding its ecosystem and attracting institutional interest. The XRP Ledger (XRPL), the underlying blockchain of XRP, has been steadily growing, with top digital asset companies like Ondo Finance and Guggenheim expressing interest in issuing tokenized real-world assets on the platform. Ripple has also announced the development of its own stablecoin, RLUSD, with over 12 million tokens minted, indicating a shift towards real-world utility and institutional-grade financial infrastructure.