United States based cryptocurrency exchanges, OKCoin and Coinbase have both notified their users that it will suspend trading in XRP soon.
This is coming a week after Ripple was hit with a lawsuit by the U.S. Securities and Exchange Commission. The SEC in a filed complaint alleged that the co-founders of Ripple, Chris Larsen and Brad Garlinghouse have raised more than $1 billion through unregistered securities sale of XRP. SEC views the number three cryptocurrency as a security.
Following this development, crypto exchange OKCoin announced today that it will suspend XRP trading and deposits from January 4, 2021 till further notice. “It is likely that this situation will take time to reach a resolution,” the blog post by OKCoin reads.
Coinbase has also made an announcement in regards the development. The top United States cryptocurrency exchange announced on Monday that it will transition XRP trading to limit only immediately from December 28 and will suspend XRP trading fully on January 19.
“Further, customers will remain eligible for the previously announced Spark airdrop(subject to approval in certain jurisdictions), and we will continue to support XRP on Coinbase Custody and Coinbase Wallet,” according to the blog post.
Since news of the SEC lawsuit against Ripple broke some exchanges have announced halting of XRP trading, these exchanges include Beaxy, OSL and CrossTower. Another top crypto exchange, Bitstamp has announced it plans to suspend XRP trading for users based in the United States only.
The SEC has charged @Ripple with conducting an unregistered security sale.
— Beaxy Exchange (@BeaxyExchange) December 22, 2020
The price of XRP has been hit hard by this news, as a result the price of the number three cryptocurrency has fallen more than 35% since then.