Crypto exchange Bitstamp has announced the suspension of XRP trading for all U.S. customers starting from Jan. 8, 2021. The crypto exchange further notified that it will closely follow the unfolding situation and will adapt accordingly. The exchange’s latest move comes amid the U.S. Securities and Exchange Commission’s (SEC) recent lawsuit against XRP’s parent company Ripple. Bitstamp Suspends XRP Trading for U.S. Customers Bitstamp is the first major crypto exchange to cut off ties from XRP in response to SEC’s filing against Ripple Labs. As per the official announcement, other countries have not been affected by the cancellation. The announcement post notes: “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. We will closely follow the unfolding situation and continue to adapt accordingly.” In light of the SEC's recent filing alleging XRP is a security, we are going to halt XRP trading and deposits for all US customers on January 8, 2021. Other countries are not affected. Read more: https://t.co/RUGtkAjr08 — Bitstamp (@Bitstamp) December 25, 2020 As per data from CoinGecko, Bitstamp’s XRP/USD 24 hour trading volume generated over $120 million. Following the SEC’s landmark lawsuit, leading market makers and exchanges such as Galaxy Digital, Jump Trading, and CrossTower have halted market making for XRP. SEC Considers XRP a Security Earlier this week, SEC filed a complaint against Ripple and two of its executives, CEO Brad Garlinghouse and co-founder Chris Larsen. As per SEC’s allegations, XRP’s parent company Ripple Labs conducted an initial coin offering to launch XRP. The sale according to SEC is considered as an unregistered sale of securities having raised $1.3 billion since 2013. Meanwhile, CEO, Garlinghouse believes SEC’s allegations against the company is totally illogical, as stated in a blog post by him: “To be clear, this is all based on their illogical claim that XRP is, in their view, somehow the functional equivalent of a share of stock.” Technically, Ripple and the XRP token are separate, although Ripple maintains a significant total of the currency’s market cap.
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