The situation surrounding XRP remains tense due to legal battles with the SEC. Binance founder Changpeng Zhao (CZ) confirmed that the exchange continues to support XRP trading despite regulatory pressure.
Ripple's Legal Challenges and XRP
Ripple has been under litigation from the SEC since December 2020, when the regulator accused the company of selling XRP as an unregistered securities offering. In response to this lawsuit, many US-based crypto exchanges, such as Coinbase, Bittrex, and Kraken, halted or suspended XRP trading to avoid potential penalties.
Binance's Support and Market Impact
Changpeng Zhao noted that Binance has never delisted XRP from its offerings, even amidst intense regulatory scrutiny. This decision was not only due to Binance being outside of US regulators' jurisdiction but also due to the high trading volume and demand for XRP, which remained one of the primary assets on the exchange. Analysts assert that supporting XRP allowed Binance to strengthen its position as the leading platform for trading this token.
Ripple's Growth and Institutional Initiatives
Despite the legal challenges, Ripple continues to expand its ecosystem. The XRP Ledger (XRPL) is attracting attention from institutional investors like Ondo Finance and Guggenheim, who are interested in issuing tokenized real-world assets. Additionally, Ripple has announced the launch of its dollar-backed stablecoin, RLUSD, indicating the company's direction towards developing infrastructure for high-quality financial services.
Binance's support for XRP has taught many market participants the importance of flexibility amid legal uncertainty. XRP continues to be a relevant asset despite ongoing debates about its status as a security.
