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Coinbase To Halt XRP Trading In Light Of SEC’s Lawsuit Against Ripple

Coinbase, the famous cryptocurrency exchange based in San Francisco has also joined the list of those cryptocurrency exchanges that have decided to suspend the trading of XRP the native cryptocurrency of the leading blockchain payments company Ripple. The cryptocurrency exchange has announced that it is going to halt the trading of XRP next month in the light of the legal battle between the United States Securities and Exchange Commission (SEC) and Ripple. Shortly after this news, the price value of the fourth-ranked digital currency plunged down by nearly 20 percent.

Full Suspension of XRP Trading Will Come Into Effect On January 19

In a blog post published on the 28th of December, the cryptocurrency exchange said that it has immediately moved the trading of XRP into “limit only”. The full suspension of the trading of XRP will come into effect next month on the 19th of January.

The Chief Legal Officer (CLO) of Coinbase Paul Grewal said in the blog post that clients’ access to the wallets of XRP will remain unaffected and despite the suspension of XRP trading, they will continue to access the functionality of withdrawals and deposits of XRP. Adding more to it, Grewal said that they have not halted the support of XRP on Coinbase Wallet and Coinbase Custody. Moreover, he said that the holders of XRP will also still remain eligible for the Spark Token Airdrop of the smart contracts platform Flare Networks.

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However, the firm has said that it might halt the trading of XRP before the given deadline of January 19 if needed because it is concerned about the maintenance of its “market health metrics”.

This announcement by the San Francisco-based cryptocurrency exchange has come around one week after the United States agency filed a lawsuit against Ripple for allegedly selling unregistered securities worth $1.3 billion.

Prior to Coinbase,  the major cryptocurrency exchange OKCoin also made an announcement saying that it will halt the trading and deposit of XRP on its platform starting from the 4th of January. Now, there are three major cryptocurrency exchanges including Coinbase, Bitstamp, and OKCoin that have suspended support for XRP so far. If things do not cool down between the SEC and Ripple in the coming days, then many other major digital currency exchanges including Binance may also announce the suspension of XRP.

XRP Suffers Price Drop

Following the announcement of Coinbase, the price value of Ripple’s native digital currency plummeted down by nearly 20 percent. After suffering a severe price drop, XRP’s value has decreased down below $0.20.

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At the press time, the price value of XRP is standing at around $0.19 with a negative price change rate of over 32% in the last 24 hours.

MubaShar Nawaz (United Arab Emirates)

MubaShar Nawaz is an experienced crypto writer working for Tokenhell. Having passion for writing, he covers news articles from blockchain to cryptocurrency.

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