Bitstamp suspends XRP trading and deposits for its U.S. customers

Bitstamp is the first major exchange to suspend trading and XRP filings following the SEC’s allegations. Other platforms may follow suit.

Bitstamp suspends XRP

The Bitstamp cryptomonaie platform announced on Saturday, December 26 that it will temporarily cease trading and XRP deposits for all its U.S. customers following accusations by the Securities and Exchange Commission (SEC):

„In light of the recent complaint filed by the SEC against Ripple Labs Inc. alleging that XRP is a security, we will cease all trading and filings of XRP for our U.S. customers on January 8, 2021 at 9:00 p.m. UTC.“

Thus, Bitcoin Evolution review restrictions will only apply to U.S. customers. In addition, XRP withdrawals from customers located in the United States will still be allowed.

Bitstamp is the first major exchange to suspend XRP trading. Smaller platforms such as Beaxy, Cross Tower and OSL have already taken the plunge.

In addition, there have been rumors that Coinbase has entered into discussions with lawyers about delinsting XRP. Coinbase is in an awkward position as the exchange is currently preparing its IPO with the SEC. As a precautionary measure, the platform could withdraw the XRP.

Other reactions

Bitwise Crypt Fund Manager Bitwise also liquidated $9.3 million of XRP held in its Crypto Index:

„Bitwise 10 Crypto Index Fund does not invest in assets that may be considered securities under federal or state law.“

MoneyGram, the global money transfer service, also clarified the nature of its partnership with Ripple. In a press release issued on December 23, MoneyGram revealed that it has never used Ripple’s counterparty services, namely the On-Demand Liquidity (ODL) and RippleNet for foreign exchange transactions.

While MoneyGram has quickly changed course, Japanese financial group SBI Holdings said the SEC lawsuit does not yet affect its partnership. Ripple’s preferred partner said :

„As far as we are aware, the lawsuit is ongoing and no injunction has been issued against Ripple, the company continues to operate as usual and continues to expand RippleNet.“

The XRP rate fell from $0.63 to $0.23, a drop of almost 63% in one week. XRP is trading at $0.276 at the time of writing.