Following the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple Labs, Coinbase—the largest U.S.-based cryptocurrency exchange—announced it will suspend trading of XRP, the fourth-largest cryptocurrency by market cap.
Key Details of the Suspension
- Effective Date: January 19, 2021 (10 a.m. PST).
- Transition Phase: Trading shifts to "limit only" mode starting December 28, 2020 (2:30 p.m. PST).
- Wallet Access: Users can still withdraw, deposit, and hold XRP in their Coinbase wallets.
👉 Stay updated on crypto regulations as exchanges adapt to legal challenges.
Why Is Coinbase Delisting XRP?
Coinbase’s decision aligns with the SEC’s classification of XRP as an unregistered security in its lawsuit against Ripple Labs. The SEC alleges Ripple raised $1.3 billion through illegal securities sales via XRP.
Market Impact of the SEC Lawsuit
Since the lawsuit was filed:
- Price Drop: XRP fell 42%, from $0.47 to $0.27.
- Exchange Reactions: Multiple platforms, including Binance.US and OKCoin, have paused XRP trading or delisted it entirely.
Ripple’s Defense and Community Sentiment
Ripple Labs CEO Brad Garlinghouse vowed to "aggressively defend" the company, asserting XRP is a currency, not a security. However:
- Investor Uncertainty: Many traders are exiting XRP positions.
- Legal Precedent: The case could set a benchmark for how cryptocurrencies are regulated in the U.S.
👉 Explore alternative trading strategies during volatile market conditions.
FAQs
Q: Can I still withdraw XRP from Coinbase after January 19?
A: Yes. Coinbase confirms wallet functionality remains unaffected.
Q: Will XRP be relisted if Ripple wins the lawsuit?
A: Coinbase stated it will "monitor legal developments," leaving the door open for future reinstatement.
Q: How are other exchanges handling XRP?
A: Reactions vary. Some (e.g., Kraken) continue trading, while others (e.g., Bitwise) have halted support.
The Road Ahead for XRP
The SEC’s case against Ripple could take months or years to resolve. Key factors to watch:
- Court Rulings: Early decisions may hint at the lawsuit’s direction.
- Exchange Policies: More platforms may delist XRP if regulatory pressure intensifies.
- Community Support: Developer activity and partnerships could determine XRP’s long-term viability.
Disclaimer: This article does not constitute financial or legal advice. Always conduct independent research.
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