Top US Exchange Delists XRP as Repercussions from SEC Lawsuit Rages On
Another exchange has cut ties with XRP, leaving the asset more vulnerable. Pretrial modalities for its SEC suit are set to begin on Monday, and both parties are keen on seeing the legal battle through.
- XRP, one of the world’s largest crypto assets, continues to feel the fallout from a brewing legal battle with the Securities and Exchange Commission (SEC).
- This week, another crypto exchange announced that it would suspend trading for the asset, citing its legal troubles as a reason.
Monitoring the Situation
In a press release from earlier this week, PayBito, a U.S.-based cryptocurrency exchange, announced that it would halt XRP trading activities on its platform. The company’s release explained that it would close all four XRP trading pairs on its platforms, adding that customers with XRP holdings will still be able to transfer their tokens from the platform for now.
As the exchange added, it will continue monitoring the progress of the legal case between the SEC and Ripple Labs (XRP’s developers). The case’s outcome will determine whether it reinstates XRP trading in the future or not.
PayBito joins a long list of crypto companies that have insulated themselves from Ripple Labs and XRP since the SEC case dropped in December.
Exchanges like Bittrex, Coinbase, Binance.US, and OKCoin have all suspended trading for the asset. Grayscale Investments has also liquidated its XRP Investment Trust, while Bitwise Asset Management has taken the asset out of its Bitwise 10 Investment Fund.
XRP Bleeds Market Share as Pretrial Formalities Set to Begin
The news of PayBito’s restriction has weighed in on XRP, with the asset trading down 0.48 percent in the past day. PayBito is a large exchange with billions of dollars in daily trading volumes. By cutting XRP out, the company is essentially reducing avenues to trade the asset and cutting liquidity. XRP might be able to weather the storm for a while, but the effects of these halts will soon begin to kick in.
In some way, they already have. Since the turn of the year, XRP has given up its place atop the rankings of crypto assets. While it maintained its third position behind Bitcoin and Ether on the list of assets by market cap, it has so far slipped down to the seventh place.
Tether, which has been in a long-standing tussle with the asset for months, capitalized on the negative investor sentiment and quickly leapfrogged XRP. Since then, Cardano and Polkadot, two highly-ranked blockchains, have seen upticks in their assets’ prices following new functionality upgrades and focuses on the fledgling decentralized finance (DeFi) sector.
BNB, the native asset for Binance, has also seen a dramatic rise, surging 47 percent in the past day and 107 percent in a week to become the third-highest cryptocurrency. All of this leaves XRP in seventh place.
While the asset has a healthy lead over eighth-placed Litecoin, anything can happen. The SEC's case is very much alive, and both parties have signaled that they won’t back down. In a joint document sent to the U.S. District Court for the Southern District of New York on Monday, both parties claimed that they would be moving ahead with the trial.
“Counsel for the parties have met and conferred and, having previously discussed settlement, do not believe there is a prospect for settlement at this time. However, the parties will promptly notify the Court if any settlement in principle is reached as to any Defendant,” the document read.
The case is set to officially begin with a virtual pretrial conference on February 22