The SEC lawsuit against Ripple Labs continues to harm the payment processor as the company has officially ended its relationship with the international money transfer provider – MoneyGram. Nevertheless, Ripple hopes to revisit the relationship in the future, especially if it prevails against the Commission.
- CryptoPotato reported in late December 2020 that the US Securities and Exchange Commission brought charges against the blockchain-based payment processor and its executives for conducting an unregistered security offering.
- Although the lawsuit is still impending, the consequences for Ripple and its native token are more than evident. The latest example came yesterday as Ripple and MoneyGram announced that they had “made the decision to end our current partnership agreement.”
- This came after reports that MoneyGram had suspended trading on Ripple’s platform, citing “uncertainty” concerning the ongoing litigation with the Commission.
- The statement now highlighted that the collaboration between the two parties managed to process “billions of dollars through RippleNet and On-Demand Liquidity (ODL).”
- Despite cutting ties with each other, Ripple’s announcement said that “we are both committed to revisiting our relationship in the future.”
- Interestingly, the news had a little-to-no negative impact on the price of XRP. Just the opposite, the asset is up by 5% since yesterday and has $0.50 in its sights.
- For comparison, when MoneyGram suspended trading on Ripple’s platform, XRP slumped by more than 15% in hours. The domino effect of exchanges delisting the token also harmed the asset’s price in the past.