Kraken will suspend XRP trading for US residents on January 29, the San Francisco-based cryptocurrency exchange announced on Friday.

While US users will still be able to deposit or withdraw XRP after that date, they have just two weeks to continue trading the beleaguered digital asset.

"We may begin implementing this process at any time on January 29, 2021, so all U.S. clients are strongly encouraged to resolve their positions prior to that day," the exchange wrote.

Ripple Labs, along with CEO Brad Garlinghouse and Executive Chairman Chris Larsen, were sued by the US Securities and Exchange Commission for $1.3 billion in December for their role in selling XRP. Several Ripple founders created XRP in 2012.

The price of XRP has dropped by roughly half since the SEC announcement. On December 21, it was brushing up against $0.60. It's currently at around $0.28.

Other exchanges have already moved to suspend XRP trading, including Binance.US, Coinbase, and Bitstamp.

As for whether trading might continue, Kraken noted: "We are monitoring the situation regarding the SEC’s filing and will adapt according to any new developments."