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Crypto platforms drop support for XRP amid SEC’s Ripple lawsuit

January 04, 2021 at 11:56AM

A growing list of crypto platforms are rescinding support for XRP as Ripple prepares for a legal battle with the US Securities and Exchange Commission (SEC).

The SEC announced an official complaint that Ripple sold unregistered securities to investors in the form of XRP.

The Daily Hodl refers to a list complied by XRP analyst, Leonidas Hadjiloizou, which consists of companies that have changed their policies surrounding XRP in response to allegations that the asset may be an unregistered security.

The lawsuit notes that XRP is a security because Ripple “has sole control over the purported cryptocurrency’s nodes and is therefore a common enterprise” under US federal securities laws.

It adds that Ripple’s existence as a corporation depended on the sale of XRP tokens to the public, and it used income from this sale to fund its operations.

The SEC announced an official complaint that Ripple sold unregistered securities to investors in the form of XRP.

Each crypto platform is adopting its own parameters regarding the sale or exchange of the digital asset. Some companies have removed support for the asset only on their US platforms, while others have cut off trading for XRP globally.

Additionally, some crypto exchanges have delisted the asset while others have halted, suspended, or disabled trading for XRP.

Crypto exchanges Bitstamp, Abra and eToro along with crypto market maker B2C2 have suspended trading for XRP in the US only. Meanwhile, crypto exchange Stex has also disabled trading for XRP in the US only.

Exchanges Coinbase, Beaxy, OSL, OKCoin, Ziglu and iTrustCapital are suspending trading for Ripple’s native asset as well, but are choosing to do so across all countries in which they operate. Market makers Jump Trading and Galaxy Digital are taking the same approach.

Crypto exchanges delisting XRP entirely in the US include: BinanceUS, CrossTower, and Bittrex. Crypto wallet, Swipe, is delisting XRP in the US as well.

Trading platform Eobot is the only exchange that has delisted XRP on a global scale.

Asset manager 21shares and Sarson Funds are also delisting globally. Sarson Funds has also liquidated its positions in XRP along with fellow crypto asset manager Bitwise.

Crypto payments firm Simplex is blocking XRP transactions globally while payments company Wirex is excluding XRP payments in the US only.

Brokers Genesis Trading and Bitcoin Suisse have removed support for XRP entirely.

Some crypto platforms are already embroiled in legal battles due to their previous support for the digital asset in question.

Coinbase lawsuit

Coinbase is facing a lawsuit over its sale of XRP. The plaintiff alleges that Coinbase sold XRP despite knowing that it was an unregistered security.

Coingeek notes that the plaintiff claims Coinbase’s actions in making XRP available for trading violated California’s unfair competition laws, and that Coinbase was aware XRP constituted an unregistered security, rather than a commodity digital asset.

Coinbase’s actions were both unlawful and fraudulent, it adds.

XRP crashed more than 50% last week after the SEC filed its lawsuit against Ripple.

XRP investors file legal action against SEC

Crypto Briefing notes that a group of XRP holders are filing a petition for a writ against the SEC’s acting chairman, Elad Roisman.

The petition alleges that the SEC harmed investors by declaring the token a security in its legal action against Ripple.

The world’s fourth-largest cryptocurrency has found strong support in Japan where cryptocurrency exchanges have refused to delist XRP.

Finance Magnates reports that the lawsuit will have no impact on the status of XRP in Japan because the cryptocurrency does not fall under the category of security in the Asian country.

According to a note by Sadakazu Osaki, a researcher at Nomura Research Institute, XRP is categorised as a crypto asset under the Funds Settlement Act in Japan.

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via FinTech Futures –