In the dynamic and often uncertain world of cryptocurrency, regulatory clarity remains a key concern for exchanges and investors alike. Amid the high-profile legal confrontation between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), one of the world's largest crypto exchanges, Binance, has consistently supported XRP trading.
The founder of Binance, Changpeng Zhao (CZ), recently reaffirmed the platform’s ongoing support for XRP. Despite intense regulatory scrutiny and widespread caution across the crypto sector, Binance never delisted the digital asset. This decision has positioned the exchange as a major hub for XRP liquidity and trading activity.
Binance’s Stance on XRP Listing
In a recent post on the social media platform X, CZ directly addressed growing public speculation. He clarified that Binance continued to allow XRP trading throughout the entire duration of the SEC’s lawsuit against Ripple. "We never delisted XRP," he stated, underscoring the exchange’s commitment to its global user base.
This affirmation came shortly after Ripple CEO Brad Garlinghouse indicated that the company would not pursue further cross-appeals, signaling a potential resolution to the multi-year legal dispute. While numerous U.S.-based exchanges like Coinbase, Kraken, and Bitstamp opted to suspend or delist XRP trading in response to the SEC’s allegations, Binance’s international structure allowed it to maintain support.
Because Binance operates largely outside U.S. jurisdiction, it faced less direct pressure to comply with SEC guidance. This operational flexibility enabled users worldwide to continue trading XRP even as the case proceeded through U.S. courts.
XRP’s Role in Binance’s Trading Ecosystem
The decision to continue listing XRP was not solely based on regulatory geography. XRP is one of the most actively traded assets on the Binance platform, contributing significantly to its trading volume and fee revenue. Delisting it would have adversely affected both traders and the exchange itself.
Industry observers note that by ensuring continuous access to XRP, Binance reinforced its position as a leading global marketplace for the asset. This became particularly evident after Ripple secured a partial legal victory in July 2023, when U.S. District Judge Analisa Torres ruled that programmatic sales of XRP on public exchanges did not constitute securities sales.
Following that ruling, several exchanges began tentatively relisting XRP, though Binance had never removed it. The episode highlights how strategic risk management can create competitive advantages in the crypto exchange landscape.
Ripple’s Progress Beyond the Courtroom
Despite the legal challenges, Ripple and the XRP ecosystem have continued to develop. The XRP Ledger (XRPL), the blockchain underlying XRP, has seen steady technological upgrades and growing institutional interest.
Major financial and digital asset firms, including Ondo Finance and Guggenheim, have expressed interest in using XRPL for tokenizing real-world assets. These developments align with broader trends in blockchain adoption, particularly in areas requiring high scalability, interoperability, and compliance.
Ripple has also introduced a U.S. dollar-pegged stablecoin, RLUSD, which has already seen substantial issuance. This move signals the company’s focus on building tangible financial infrastructure and expanding its utility beyond payments.
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Frequently Asked Questions
Why did Binance continue to list XRP during the SEC lawsuit?
Binance is headquartered outside the United States and is not directly subject to U.S. regulatory authority. This allowed the exchange to maintain XRP trading without immediate legal pressure, unlike U.S.-based platforms that quickly delisted the asset.
What was the significance of Judge Torres’ ruling in 2023?
The ruling stated that programmatic sales of XRP on public exchanges did not qualify as securities transactions. This provided legal clarity that benefited Ripple and supported relisting efforts by some exchanges.
How did Binance benefit from not delisting XRP?
By continuing to offer XRP, Binance captured significant trading volume and cemented its role as a key liquidity provider for the asset, especially after Ripple’s partial legal victory.
Are other exchanges relisting XRP now?
Yes, following the 2023 court decision, several exchanges have begun relisting XRP, though many adopted a wait-and-see approach during the lawsuit.
What is Ripple’s stablecoin?
Ripple has launched RLUSD, a U.S. dollar-pegged stablecoin designed to facilitate seamless transactions and enhance liquidity within its payment and decentralized finance ecosystems.
How is the XRP Ledger being used today?
The XRP Ledger is increasingly used for tokenizing real-world assets and enabling cross-border payments, with growing interest from institutional players in finance and technology.