Cryptocurrency exchange and finance platform Crypto.com said Monday night it will delist and suspend trading in the U.S. of XRP, the cryptocurrency behind the U.S. Securities and Exchange Commission lawsuit against Ripple Labs last week.
Effective Jan. 19, 2021, at 10 a.m. UTC, XRP will be delisted and trading suspended from the Crypto.com App in the U.S.
On Tuesday, crypto payments firm Wirex and bitcoin app Ziglu took similar actions, according to The Block. Wirex won’t include XRP in a U.S. version of its app while Ziglu will suspend trading in XRP as of Jan. 12, 2021.
The SEC claimed last week that XRP is a security, and that Ripple has been selling it without registering or seeking an exemption for seven years, raising $1.3 billion in the process. The legal battle is just beginning, and litigation might take years to resolve. Ripple has said it would fight the lawsuit.
In a general statement released Tuesday, Ripple said that with the “uncertainty” introduced into the market as a result of the SEC’s legal action, it’s “no surprise that some market participants are reacting conservatively as a result.”
Given that exchanges that handle the trading of securities must fill out a lot more paperwork than those that don’t, it’s little wonder crypto exchanges and market makers are backing away from XRP.
Like Coinbase, Cypto.com said it will continue to support the Spark (FLR) Token Distribution to XRP holders, which is currently set for the first half of 2021.
UPDATE (Dec. 29, 22:45 UTC): Adds Ripple comment. Adds actions by Wirex, Ziglu and Swipe.
Read our ongoing coverage of the SEC’s case against Ripple and its impact on the industry here.