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Blockchain.com has stated it would drop the XRP and halt trading in the coming week, following Binance.US, Coinbase, OKCoin, and other measures. XRP continues to decline, after Coinbase’s recent swap of vaults by removing the world’s fourth-largest coin following an SEC proceeding against Ripple Labs Inc. XRP has plummeted by 37% on Tuesday, bringing it down to 60% a week since securities authorities have accused Ripple of releasing over $1 billion of unregistered coins. Coinbase said on Tuesday it will halt its XRP trading entirely on January 19 but will continue to provide customer custody services. For more precise and accurate information check this article on the safe reasons to invest in the world’s top cryptocurrency.
Reasons for XRP delisting
News of a further XRP delisting came shortly after rumors of another lawsuit by one of the key investors in the Tetragon Investment Company’s 2019 $200 million Series C financing round.
Bombshell’s lawsuit by the SEC against Ripple Labs is now well-known in the crypto-currency community. Still, its vast implications for regulatory overruns against innovation provoke mainstream debate in some of the most influential policy categories in the country.
In December, Ripple and two of its senior managers sued Ripple for seven years of the XRP cryptocurrency distribution that the agency labeled as unregistered illicit securities trading. Ripple offers the XRP currency and its completely decentralized ledger, a worldwide payment network for around 2 million customers globally. The Company vehemently contests the claims by pointing out that the regulatory agency has allowed millions of XRP tokens to move freely for seven years on international cryptocurrency exchanges, while they have been requested to clarify this for years in public and private. The SEC further claims that XRP is the only utility of Ripple and that all XRP holders rely on Ripple’s activities to earn a return on their holdings. The action attempts to enforce XRP’s registration as security and prevent Ripple’s management from participating in the market.
The event examined whether and to what extent the SEC may breach the fair notice, due process, and the rule of law legal and constitutional norms. Many observed the timing of the SEC suspected, the abrupt thud dropped on the final day of the SEC President’s last term since XRP was in circulation for so long. Curt Levey, president of the Justice Committee, an acclaimed conservative lawyer, and scientist hosted the event.
According to the SEC complaint lodged at the U.S. Southern District Court in New York, Ripple has been selling $ 1.3 billion in XRP since 2013 by CEO Brad Garlinghouse and Chairman Chris Larsen. The SEC argues that Ripple has not registered XRP as security or sought an exemption for the token, of which around 50 billion is deprived. For his side, Ripple labeled the charges “unproven” and pledged to bring a response to the court in the next few weeks. The Company located in San Francisco has branded the SEC litigation a “crypto assault” in the U.S., with CEO Garlinghouse alleging the agency’s actions “directly benefited China.”
According to the public court records, a pretrial meeting had been planned for February 22, 2021. The parties are obliged to submit a joint letter outlining the case and the reasons for making prospective motions and potential settlement terms on each side a week earlier. By February 15, the SEC and Ripple must also submit a joint letter saying if both parties agree to the proceedings being supervised by the judge (rather than a district judge).
XRP as a Currency
XRP holders driven following the action of the SEC to panic are angry. John Deaton and the CryptoLaw website are challenging the lawsuit apart from Ripple. To fight what he called the SEC’s outrageous, improper move, and afterward, he filed a motion to intervene on behalf of more than 18,000 XRP holders in the SEC lawsuit in New York City’s Southern District.
Many app developers, organizations, enterprises, and others claim that they never heard of Ripple before and never saw XRP in any business as an investment contract.
The Binance U.S also halted Ripple
Binance US suspends XRP trading for its customers beginning next month. The U.S. branch of the world’s biggest crypto exchange stated Wednesday that, beginning 10:00 a.m. E.T. on January 13, 2021, clients would not be able to deposit or swap XRP (-6.42 percent) on the platform while withdrawals will not be affected. The notice does not apply to Binance in its entirety. Following the SEC sued Ripple earlier this month on claims that it has sold XRP as unregistered securities for more than seven years, Binance US is the first crypto trading venue in the U.S. The price of XRP decreased 2.1 percent when the news emerged, reaching a 24-hour low of $0.199910, although it is rebounding steadily.