Binance.US and eToro also discontinue XRP trading
Two other major American crypto trading platforms are dropping XRP in the future due to the SEC complaint against Ripple.
Mainstream trading platform eToro and American crypto exchange Binance.US have now also decided to remove the Ripple cryptocurrency XRP from their listings altogether.
Accordingly, eToro had initially reported on Thursday that XRP trading on its own platform would be discontinued as of 3 January 2021. Users by Bitcoin Up who still have open trades in the cryptocurrency by then will have to close their positions within 3 weeks.
Meanwhile, Binance.US, the American offshoot of the market-leading crypto exchange Binance, will not close its XRP trading until 13 January 2021.
This means that Binance.US and eToro are doing the same as many other crypto exchanges such as Coinbase and Bittrex, which have already made XRP inaccessible to the American market. Coinbase is meanwhile already being sued by a crypto trader who accuses the trading platform of deliberately offering an unregistered security for trading with XRP.
The background for the crypto exchanges‘ XRP exit is that the US Securities and Exchange Commission (SEC) has filed a lawsuit against XRP issuer Ripple, accusing the crypto payment service provider of a massive violation of securities law. This could result in a drastic change in the legal situation surrounding XRP, at least for the USA, which is why the country’s platforms are taking the cryptocurrency out of trading as a precaution.
Some American investment firms that are invested in XRP have also now liquidated their positions as a result
For example, the large crypto asset management firm Grayscale sold just under US$5.77 million in XRP after the indictment became known. Asset management firm Bitwise has also sold all of its XRP assets and removed the cryptocurrency from its index fund.
Nevertheless, Ripple is ready to fight and wants to defend itself against the SEC lawsuit. Accordingly, the crypto payment service provider is calling on its investors not to blindly follow the SEC’s reasoning.