XRP’s Tiff With The SEC Proves To Be Expensive As Bitstamp Puts A Hold On XRP Trading

Bitcoin has been traversing into greater heights. The king coin has managed to take along several other coins with it. XRP seems to be rather confused. The asset has been juggling between the bears and the bulls. The altcoin’s highly volatile nature and a recent allegation from the Securities and Exchange Commission of the United States have put the altcoin in a bad light. While Ripple is trying to wiggle out of the lawsuit, several cryptocurrency exchanges have been expressing distress with regard to their association with the asset. More recently, Bitstamp revealed that it wanted to steer clear of trouble by putting a hold on the trading of the fourth-largest cryptocurrency.

XRP Loses A Spot In Bitstamp

While the crypto community was celebrating Bitcoin’s all-time high, XRP holders were given a big shock. The price of the asset depleted down by almost 50% after its parent company, Ripple was slapped with a lawsuit by the Securities and Exchange Commission [SEC] of the US. This lawsuit caused a huge uproar in the entire industry. Several platforms including MoneyGram revealed that it had never utilized the RippleNet or its ODL services. Apart from this, small cryptocurrency exchanges like Beaxy, CrossTower as well as OSL went on to put a hold on the trading of the asset.

While rumors that prominent cryptocurrency exchange, Coinbase was going to pull the plug on trading services of XRP surfaced, another popular exchange affirmed that it was going to halt trading for the crypto asset. In a brief blog post, Bitstamp revealed that it would eliminate services for XRP. However, this was limited to its US customers alone. The blog post read,

“In light of the recent SEC filing against Ripple Labs Inc., which alleges that XRP is a security, we are going to halt all trading and deposits of XRP for our US customers on 8 January 2021 at 9 PM UTC.”

The platform affirmed that it would observe the situation and assess its subsequent steps. Additionally, the customers of the US would be able to withdraw XRP.

XRP seems to be still reliving its downhill days as the asset was seen trading at $0.3099 with an 8.65% dip over the last 24-hours. This seems rather wary as all the other assets were seen lounging on the greener side.

Sahana Kiran: Experienced Journalist with a demonstrated history of working in the online media industry. Skilled in Photography, Feature Writing, Journalism, Online Journalism, and Web Content Writing. Strong media and communication professional with a Bachelor of Arts - BA focused in Journalism