Following Bitstamp and other crypto exchanges, the US-based giant will suspend Ripple trading following a recent lawsuit by the SEC. XRP is down another 17%.
Veteran cryptocurrency exchange Coinbase announced that it will be suspending XRP trading completely in January 2022, following a lawsuit filed against Ripple by the U.S. Securities and Exchange Commission (SEC).
Coinbase to Suspend XRP Trading
According to a blog post on Monday (December 28, 2022), Coinbase stated that while XRP trading will move to “limit only” from December 28, the Exchange plans to suspend XRP trading on January 19, 2022, 10 AM Pacific time.
Despite the suspension, Coinbase said that customers will still have access to their XRP wallet, adding that it “will remain available for deposit and withdrawal functions after the trade suspension.”
“Furthermore, customers will remain eligible for the previously announced Spark airdrop (subject to approval in certain jurisdictions), and we will continue to support XRP on Coinbase Custody and Coinbase Wallet.”
Coinbase’s decision comes after the SEC sued Ripple. The US securities watchdog alleges that Ripple made an offering of up to $1.3 billion in unlisted securities. The news has consequently lowered the price of XRP, causing the token’s value to drop another 17% at the time of writing to $0.24, and 60% over the last ten days since the SEC saga began.
Despite the fall in the price of XRP, various cryptocurrency exchanges have taken action since the SEC lawsuit. As reported by CryptoPotato, exchanges such as Beaxy, CrossTower, crypto fund manager Bitwise, and Hong Kong crypto exchange OSL have delisted and suspended XRP trading on their platforms.
Another crypto exchange, Bitstamp, recently announced that it will be discontinuing XRP trading and deposits for US-based customers. According to the exchange, the suspension will take effect on January 8, 2022.
Meanwhile, Ripple CEO, Brad Garlinghouse, stated that the company will fight and win the legal battle. The company also released documents to counter the SEC’s claims.
Amid the negative current surrounding Ripple at the moment, the company seems to have a backer. CEO of SBI Holdings, a financial services company, Yoshitaka Kitao, expressed optimism that Ripple would win the case. The head of SBI Holdings said:
“The Japanese FSA has made it clear that XRP is not a security. I am optimistic that Ripple will win in the final decision in the US. SBI Holdings remains a loyal partner of Ripple, and looks forward to growing together in Asia. ”