In brief
- Blockchain.com, a crypto exchange, will halt XRP trading.
- It’s a direct response to the SEC’s lawsuit against Ripple, the company behind XRP, which alleges that the token is actually an unregistered security.
- Exchanges like Coinbase and eToro have already said they will stop all XRP trades.
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Blockchain.com, a cryptocurrency exchange, will disallow XRP trading on its platform, according to a statement from the site.
January 14 will mark the site’s last day of XRP trades before the freeze. The statement clarifies that Blockchain.com traders will retain access to the XRP they already have, albeit in a limited capacity—they’ll be able to send it out, but won’t be able to receive any new XRP.
The note makes it clear that the move is a direct response to the SEC’s recent lawsuit against Ripple, the company behind XRP, which alleges that the token is essentially an unregistered security, and that previous sales were illegal; the regulator is suing Ripple the $1.3 billion it says the company raised in an unregistered ICO.
The complaint also alleges that Ripple’s current chief executive and former chief executive schemed to sell XRP to companies that they knew had little “use” for the token.
Blockchain.com is the latest exchange to announce a freeze on XRP trading in the wake of the SEC’s filing. Exchanges like Coinbase, eToro, Binance.US, and Bittrex have already made similar announcements, as maintaining ties with Ripple becomes a riskier affair.
A few exchanges, however, aren’t giving up on XRP just yet. Uphold and Revolut, which have a larger presence in the UK, are taking a “wait and see” approach to the SEC’s lawsuit. Uphold, in particular, has been vocal in its support of XRP.
The price of XRP has fallen significantly since December, when news of the charges first broke. It was the third-largest cryptocurrency by market capitalization at the time, and has since dropped to the fifth spot.
The price of a single XRP is now around 22 cents.