Coinbase announced that it will suspend trading in XRP after the United States Securities and Exchange Commission (SEC) recently filed a lawsuit against Ripple Labs, alleging that the popular cryptocurrency is actually a security. The reason is that Ripple has raised at least €1.38 billion selling XRP without registration or exemption request for seven years. While the legal battle between the SEC and Ripple could take years if the company fights the charge in court, Coinbase has joined the growing list of US cryptocurrency exchanges, including CrossTower and Beaxy, that have delisted XRP. . In a new blog post, Coinbase chief legal officer Paul Grewal explained how removing XRP from the exchange will work for his clients, saying: “In light of the SEC lawsuit against Ripple Labs, Inc, we have taken the decision to suspend trading of XRP pairs on our platform. Trading will not be capped until December 28, 2020 at 2:30pm PST and will be fully suspended on Tuesday, January 19, 2021 at 10:00am Pacific Standard Time. "
XRP removal
Although Coinbase has now made the decision to remove XRP from its exchange, Grewal said that the company will continue to monitor legal developments related to the cryptocurrency and that clients will receive updates with new information as soon as it becomes available. will be available. He also noted that the trading suspension will not affect Coinbase clients' access to their XRP wallets, which will remain available for deposit and withdrawal functions even after the trading suspension. In addition, the company's customers will also continue to be eligible for a previously announced Spark airdrop and will continue to support XRP in Coinbase Custody and Coinbase Wallet. Since its announcement last week, the SEC lawsuit has reduced the price of XRP by more than 50%, from €0,45 per coin to around €0,20 per coin. While Coinbase wasn't the first cryptocurrency exchange to delist XRP, the move makes sense ahead of its historic IPO since the company's preliminary filings have yet to be reviewed by the SEC. However, if Ripple is successful in its defense, Coinbase will probably be able to put XRP up for sale again quite easily. Via CoinDesk