Following news of the legal action, which alleged that Ripple had been conducting unregistered securities offerings worth $1.3 billion, the price of XRP plummeted heavily.
But things are getting worse for the cryptocurrency. The drastic fall in price was just one of XRP’s problems as several crypto trading companies have quickly moved to disassociate themselves from the cryptocurrency to avoid getting hammered by the U.S. regulator. These companies have either delisted XRP or suspended support for the cryptocurrency on their platforms.
Here’s the list of exchanges that have already delisted XRP following the SEC lawsuit against Ripple.
Coinbase is the leading US-based cryptocurrency exchange and it announced that it will enable “limit only” trading for XRP starting December 28th, while suspending XRP trading altogether on January 19th.
Bitwise Assets Management
The San Francisco-based crypto fund manager announced a few hours ago to press time that it had discontinued its support for XRP. Bitwise liquidated all of the XRP in its Crypto Index Fund and channeled the proceeds from the sale to other portfolio assets.
The Bitwise 10 Crypto Index Fund does not invest in any digital asset viewed as security under any federal securities law. Therefore, since the lawsuit alleges that XRP is a security, the fund manager promptly liquidated its position in the asset.
CrossTower is the first cryptocurrency exchange to delist XRP from its platform following the news of the lawsuit against Ripple.
The exchange announced Tuesday that it would suspend XRP trading only on its U.S. trading platform. Due to the impromptu nature of the news, CrossTower allowed its users to continue with withdrawals in the meantime.
Hong Kong-based crypto exchange, OSL, announced earlier today that it would suspend every transaction involving XRP, including trading and payment services, on all of its platforms until the issue is resolved.
“Please note: In light of US Securities & Exchange Commission’s enforcement action against Ripple Labs & 2 of its executives, we have suspended all #XRP payment in and trading services on the OSL platform, effective immediately and until further notice,” the exchange tweeted.
Chicago-based exchange Beaxy has also delisted XRP from its platform and immediately halted every trading operation involving the cryptocurrency on the platform until further notice. The exchange, however, still allows users to continue with XRP withdrawals.
Beaxy stated that it would resume all transactions involving XRP once the court decides that the cryptocurrency is not a security, as alleged by the lawsuit.
The veteran European exchange had announced that it will halt XRP deposits and trading starting January for its U.S. customers. So far, Bitstamp is the biggest exchange to do so.
This is yet another popular cryptocurrency exchange that said it will delist XRP and suspend trading starting from January 19th, 2021.
On December 28th, OKCoin joined the list of many exchanges to take action following the lawsuit between the SEC and Ripple. The exchange will halt XRP trading and deposits on January 4th, 2021.
What Next For Ripple?
Although none of the big exchanges has taken any action against the trade of XRP on their platforms, there is still the risk of many other crypto entities following in the footsteps of the above-mentioned firms.
Speaking of the lawsuit, Ripple’s CEO, Brad Garlinghouse, has termed it “an assault on all crypto.” He also added that Ripple will fight the SEC’s claims regarding XRP and prove their case.