Overview
Coinbase has announced it will suspend XRP trading on its platform next month, following similar moves by other major exchanges. The decision comes in response to the U.S. Securities and Exchange Commission's (SEC) lawsuit against Ripple Labs, alleging that XRP constitutes an unregistered security.
Key Developments
- Trading Suspension: Coinbase will halt XRP trading on January 19, though the token remains available via Coinbase Wallet and Custody.
- Market Impact: XRP's price has dropped sharply (55% in one week) as exchanges delist the token.
- Legal Context: The SEC alleges Ripple raised $1.38 billion through unregistered securities sales.
Detailed Breakdown
Coinbase’s Decision
Paul Grewal, Coinbase’s Chief Legal Officer, stated:
“In light of the SEC’s lawsuit against Ripple Labs, Inc, we have made the decision to suspend the XRP trading pairs on our platform.”
Timeline:
- Immediate shift to "limit-only" orders.
- Full suspension by January 19, 13:00 ET.
- Deposits/withdrawals remain active, and Spark airdrop eligibility is unaffected.
👉 Read more about exchange policies
Broader Market Reactions
Other exchanges taking action:
- OKCoin: Suspended XRP trading.
- Bitstamp: Delisted XRP.
- Bitwise: Liquidated XRP holdings.
Price Impact: XRP’s value has plummeted amid regulatory uncertainty.
SEC Lawsuit Against Ripple
Allegations:
- Ripple exploited an "information vacuum" to sell unregistered securities.
- $1.38 billion in profits allegedly raised illegally.
Current Status: Case ongoing; Ripple disputes the SEC’s classification of XRP.
FAQs
1. Can I still hold XRP on Coinbase after January 19?
Yes, via Coinbase Wallet and Custody, but trading will be disabled.
2. Will the Spark airdrop proceed for XRP holders?
Yes, eligible users will still receive Spark tokens.
3. Why are exchanges delisting XRP?
Due to the SEC’s lawsuit, exchanges are preemptively avoiding regulatory risk.
4. How has XRP’s price reacted?
A 55% drop in seven days reflects market panic.
5. Is Ripple disputing the SEC’s claims?
Yes, Ripple argues XRP is a currency, not a security.
6. What’s next for XRP?
Outcome depends on the lawsuit’s resolution and potential exchange relistings.
Conclusion
Coinbase’s move underscores the regulatory pressures facing cryptocurrencies. XRP’s future hinges on legal outcomes and market confidence.
👉 Explore crypto regulations further
Note: All hyperlinks except those directing to https://www.okx.com/join/BLOCKSTAR have been removed per guidelines.