XRP just is not winning now, as Kraken currently stands as the newest crypto exchange set to suspend trading in XRP tokens. The reason given, similar to the a number of other institutions as well as exchanges which dropped XRP like a hot potato in recent weeks, was because of the SEC enforcement actions brought against Ripple.
Kraken announced on Jan. fifteen that it will halt trading in XRP for US residents. From the company’s statement:
Given the recent SEC filing against Ripple Labs Inc., we are halting XRP trading for U.S. residents no later than January 29, 2021 at 5pm PT (January 30, 2021 at 1:00 UTC). 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.
U.S. residents with open XRP spot positions on margin should satisfy their margin obligations by January 28, 2021 at 11:59pm PT or their positions will be liquidated in accordance with our Terms.
The exchange specified that US residents would still be in a position to deposit, hold, and withdraw XRP after the freeze takes place. The activity impacts just US residents; “Clients residing in some other places aren’t affected.”
The announcement additionally contains a FAQ list. It covers subjects like just how long the ban can last (they will adjust to any kind of change in the SEC saga). The upcoming change to a deposit-hold-withdraw mainly regime might improve when the circumstance should improve. Furthermore, the company’s plans about the Spark token airdop remain unrevised.
The SEC Move
News about Ripple has been decidedly negative since the SEC filed its lawsuit against Ripple. The SEC claims that the company sold $1.2 billion of unregistered securities in the type of XRP tokens. Former CEO Christian Larsen along with current CEO Brad Garlinghouse can also be charged with offering another $600 million in unregistered securities in the type of XRP.
Ripple Labs is actually guarding itself in court and in the media. Garlinghouse especially has taken to Twitter to clarify the company’s position, stating that nobody has been quiet, neither can they give up this fight. Garlinghouse claims to be on the proper side of the facts and of history, and is looking forward to Ripple’s day in court – in addition to engaging with the brand new SEC leadership when appointed.
Ripple Treading Water
Exchanges with substantial US exposure even moved fast. Garlinghouse observed that the US accounts for approximately five % of XRP holders, though the exchanges kept a watch on compliance. Bitstamp, Binance, Coinbase, along with OKCoin are actually among the exchanges which have signaled stoppages.
In a single indication as to just how Ripple is going to leave this eddy of exercise, SEC Commissioner Hester Peirce, commonly recognized as ‘Crypto Mom‘, reported in a recent interview that fees like these frequently get settled out of court.