Bleeding continues in the United States for Ripple. It is now eToro’s US subsidiary’s turn to announce the withdrawal of XRP for its US customers. Trading will end on January 3rd. The list is growing for the token.
2020, a year to forget for Ripple and XRP. For the SEC, the token cannot claim the same regulation as Ether or Bitcoin. Indeed, the regulator qualifies it as a security, a financial security. Consequently, Ripple is illegal.
And any exchange that would allow US citizens to acquire it without holding an SEC license is also subject to prosecution. The crypto industry is therefore rapidly withdrawing from XRP to protect itself from this legal risk.
eToro, an Israeli crypto exchange, is one of the last to make this decision. The decision applies only to its U.S. subsidiary and to customers residing in the country. As a result, as of January 3, XRP purchases and conversions will no longer be possible.
However, consumers will still be able to withdraw Ripple tokens from their wallets. Since last week, the list of exchanges suspending XRP has continued to grow.
Almost all the major market players now apply an equivalent policy. The withdrawal of XRP by Coinbase has certainly convinced the most reluctant to align themselves with this strategy.
It now concerns the major crypto services such as Binance, Crypto.com, OKCoin, Wirex and Bittrex. Grayscale, on the other hand, denies the liquidation of its XRP and XLM assets for regulatory reasons.
“Statements regarding significant sales of underlying assets by any of our investment products are false and inaccurate. Any perceived significant decline in the USD value of the Grayscale XRP Trust would have been the result of a decline in the USD price of the XRP,” said a spokesperson.
Nevertheless, the vast majority of firms will therefore apply a suspension of XRP to US clients only. Only a handful of players are choosing to extend this practice to all of their operations.
Ripple’s calls for calm are struggling to be heard. January promises to be another eventful month for the company. In the coming weeks, it will present its counter-argument to the courts. The preliminary hearing is scheduled for February.