A certain type of deal was restricted today, with full suspension to begin on January 19, 2021, after Coinbase listed this digital currency on its platform for the first time in February 2019.
“We continue to monitor legal developments related to the currency and update our customers as more information becomes available,” wrote Paul Grewal, Coinbase’s chief legal officer.
Coinbase’s XRP price fell from $ 0.28 to $ 0.24 within the first 20 minutes of the announcement, while the coin’s price has fallen more than 50 percent since the US Securities and Exchange Commission’s lawsuit was announced last week.
Coinbase is the largest cryptocurrency exchange, and the suspension of trading in the XRP coin casts doubts on the currency’s future, even before the SEC lawsuit was settled.
Coinbase says it has decided to suspend XRP in light of a lawsuit filed by the US Securities and Exchange Commission against the developer, Ripple.
With the suspension app, people will no longer be able to trade XRP through Coinbase, although they will still be able to deposit and withdraw from their XRP wallets.
The US Securities and Exchange Commission claims XRP is a security and should be treated as such.
This means that the former CEO and current CEO of Ripple must be responsible for disclosing a variety of additional information needed to access XRP risks prior to any investment.
Ripple believes the opposite, and considers XRP to be a currency in her view, and therefore does not fall within the purview of the US Securities and Exchange Commission.
Coinbase is the major cryptocurrency exchange that has suspended this currency, and other exchanges, such as Bitstamp and OK Coin, have also made similar decisions after the legal action of the US Securities and Exchange Commission.
By announcing the lawsuit against Ripple, the US Securities and Exchange Commission influenced the short-term future of the XRP coin.
It is noteworthy that cryptocurrency exchanges are not registered with the US Securities and Exchange Commission, and therefore it is in their interest to stop trading securities in order to protect them and not for the sake of their clients.