The recent action of the U.S. SEC by filing the lawsuit against Ripple has left the firm under dark clouds. Three exchanges stop XRP trading at their platforms after the lawsuit filed against Ripple. These exchanges that stopped XRP trading include Cross Tower, Beaxy, and OSL.
Even since the lawsuit has been filed, XRP seems to be suffering as its price is continuously going down. Now as the exchanges have halted trading the token, this will be contributing to this downfall of XRP and might lead other exchanges to do the same.
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.https://t.co/EXJJEHMawn
— OSL (@osldotcom) December 23, 2020
Three Exchanges Stops XRP Trading Until Further News
Not only Ripple, but the lawsuit also includes CEO Brad Garlinghouse and co-founder Chris Larsen. According to the lawsuit, the firm has offered unregistered securities worth $1.3 billion since 2013. The press release from the SEC stated:
“The defendants failed to register their offers and sales of XRP or satisfy an exemption from registration, in violation of the registration provisions of the federal securities laws.”
The analysts have started claiming that if the SEC will win this lawsuit, there will be a serious risk to all those crypto exchanges who have listed XRP on their platform. Three exchanges have stopped trading XRP until there is any further news regarding this lawsuit.
Exchanges Need to Delist Token from Their Platform
Bruce Fenton, CEO of Chainstone Labs, has said that all the crypto exchanges who are trading XRP need to delist the token, this week only. To prevent the platforms from the potential risk that XRP is having, a lot of smaller exchanges have started delisting XRP from their platform. In case, the SEC proves XRP to be a security and wins the lawsuit, it will be a serious risk for all those exchanges who haven’t delisted XRP from their platform. Even though Ripple claims XRP to be a digital asset that is more like an alternative to Bitcoin and Ethereum, the SEC stays firm on its point of XRP being security.
I just read the 71 page SEC complaint vs. Ripple.
I think any crypto exchange who doesn’t delist XRP this week is out of their mind.
If the SEC says it’s a security you’d be crazy to list it without a license.
— Bruce Fenton (@brucefenton) December 23, 2020