Coinbase to block XRP’s trading following the SEC’s lawsuit against Ripple
- Coinbase has announced that it will stop all XRP trading from 19 January 2021.
- The trading suspension follows a pending SEC case against Ripple Labs and its management.
- The aidrop of token Spark will not be affected by this process.
Following an ongoing Securities and Exchange Commission (SEC) lawsuit against Ripple Labs, Coinbase has announced that the platform will suspend its XRP trading Bitcoin Superstar records from mid-January.
The lawsuit alleges that Ripple Labs, its former CEO Christian Larsen and current CEO Brad Garlinghouse are guilty of raising $1.3 billion from the sale of XRP tokens as unlicensed securities since 2013.
Due to the legal ramifications and uncertainty of the situation, Coinbase has decided to suspend all XRP trading from 19 January 2021.
Coinbase goes on the defensive
Coinbase explained the details of this change in a blog post published earlier in the day on 29 December.
Until 19 January 2021, when all XRP transactions will be halted, Coinbase has moved its order books to the limit only. The exchange has not given a definitive answer as to whether or when trading will be reopened, but this will likely be determined by developments in the SEC case.
Coinbase has indicated that deposits and withdrawals will continue to operate normally, so customers holding or simply transferring assets should not be affected.
A further complicating issue is the recent airdrop of Flare Network’s Spark token that was offered to XRP holders. Confirmation of this airdrop was made on December 12 and Coinbase has assured clients that this process will not be affected by the suspension of trading.
Exchange Bitstamp and many others have already announced similar plans to delist XRP and stop trading and deposits.
The price of XRP continues to suffer
Since the announcement of the trial on 22 December, the price of XRP has fallen by more than 56%.
This massive fall has probably been fuelled by a combination of fears about the SEC potentially classifying XRP as a stock and post-snapshot profit-taking.
The XRP initially climbed more than 200% in November to reach a peak of more than two years at $0.82 before the crash began.
It is currently trading at $0.225, but things could get much worse depending on the SEC case and the steps taken by other major exchanges to mitigate the legal problems that could be brought against them.