Major cryptocurrency exchange Coinbase has announced it will suspend trading for the XRP token in response to the U.S. Securities and Exchange Commission (SEC) taking legal action against Ripple. This decision marks a significant shift in the crypto market landscape, particularly for XRP investors and traders.
Details of the Suspension
According to a blog post by Coinbase Chief Legal Officer Paul Grewal, the exchange will fully suspend XRP trading starting January 19 at 10:00 AM PST. The platform noted that trading could be halted earlier if necessary to maintain market health metrics.
Key points regarding the suspension:
- Wallet functionality remains unaffected: Users can still deposit and withdraw XRP after the trading halt.
- Continued support for Coinbase Custody & Wallet: XRP will remain accessible via Coinbase Custody and Coinbase Wallet.
👉 Learn more about how exchanges handle regulatory compliance
Background: SEC Charges Against Ripple
The suspension follows the SEC’s December 22 announcement of a $1.3 billion lawsuit against Ripple Labs, CEO Brad Garlinghouse, and co-founder Chris Larsen. The SEC alleges that Ripple conducted an "unregistered securities offering" via XRP sales.
Market Impact
Following Coinbase’s announcement, XRP’s price plummeted over 10%, dropping from $0.28 to $0.25. This decline adds to a 44% price drop since the SEC’s initial lawsuit announcement.
Other Exchanges Halting XRP Trading
Coinbase is among several major exchanges taking action against XRP:
- OKCoin: Suspended XRP trading and deposits starting January 4.
- Bitstamp: Halted XRP trading for U.S. customers.
- OSL, Beaxy, CrossTower: Smaller exchanges also delisted or suspended XRP trading.
👉 Stay updated on crypto exchange policies
FAQ
Why is Coinbase suspending XRP trading?
Coinbase is complying with the SEC’s lawsuit against Ripple, which classifies XRP as an unregistered security.
Can I still withdraw XRP from Coinbase?
Yes, XRP wallets will remain functional for deposits and withdrawals.
Will other cryptocurrencies be affected?
Currently, only XRP is impacted, but regulatory scrutiny may extend to other assets in the future.
What happens if I hold XRP on Coinbase after January 19?
You can keep your XRP in your wallet but won’t be able to trade it on Coinbase.
Conclusion
The suspension of XRP trading highlights the growing influence of regulatory actions on cryptocurrency markets. Investors should monitor developments closely, as further legal decisions could impact other digital assets.
This is a developing story. Updates will follow as new information emerges.
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