After the U.S. Securities and Exchange Commission (SEC) recently filed a lawsuit against Ripple and two executives, the cryptocurrency community is very curious about what will happen to Ripple Labs and the token asset XRP. On December 25, the large cryptocurrency exchange Bitstamp announced that it would delist XRP for US customers, and a former SEC commissioner believed that the lawsuit would cost innocent third parties billions of dollars in losses.
The Luxembourg Crypto Exchange gave up its XRP support for American customers: “will closely monitor developments and make adjustments accordingly”
In addition to historically high prices, one of the hottest topics in the cryptocurrency field is the recent allegations made by the US Securities and Exchange Commission (SEC) against Ripple Labs.U.S. Securities and Exchange Commission Said The regulator “filed a lawsuit against Ripple Labs Inc. and its two executives who are also important security holders, claiming that they have raised more than $1.3 billion through unregistered ongoing digital asset securities offerings.”
After the SEC allegations, three exchanges (OSL, Crosstower and Beaxy) decided to give up support for XRP together with the funding Bitwise Asset Management. December 25, 2020, Bitstamp’s cryptocurrency exchange headquartered in Luxembourg Announce It will stop providing XRP services to all US customers on January 8, 2021. In a blog post on the topic Bitstamp said:
In view of the recent SEC filing against Ripple Labs Inc. that XRP is a security, we will suspend all XRP transactions and deposits for US customers on January 8, 2021 UTC. We will pay close attention to the evolving situation and continue to make corresponding adjustments. Our US customers can still withdraw XRP from Bitstamp. Customers from other countries will not be affected.
SEC action will cause significant damage to innocent holders
With the SEC Chairman Jay Clayton’s decision to resign, the XRP operation is also happening. SEC Commissioner Hester Pierce announced on Twitter that Elad Roisman (Elad Roisman) has been appointed as the acting chairman of the US financial regulator. “Congratulations, Chairman Roysman,” Pierce Tweet December 24. “I look forward to your leadership of the SEC,” she added.In addition, the block Frank Chaparo Received a letter from Joseph Grundfest, former commissioner of the US Securities and Exchange Commission.
According to a letter Grundfest allegedly told Jay Clayton that Ripple’s lawsuit was “unprecedented” and that “there is no urgent reason to force immediate enforcement action.” The views on transaction regulation that are similar to the transactions discussed may be quite different from current views,” the Grundfest letter wrote.
The former director of the US Securities and Exchange Commission further wrote:
Regardless of the final solution, merely filing a lawsuit will cause significant damage to the innocent holders of XRP. After learning of this procedure, intermediaries will stop trading in XRP due to related legal risks. The resulting decline in liquidity will lead to a decline in the value of XRP.
According to reports, the acting chairman of the US Securities and Exchange Commission Elad Roisman (Elad Roisman) also discussed the evolving cryptocurrency market in 2018. Said at the time. “This has recently been reflected in the emergence of data protection and network security, as well as new investments and technologies such as initial coin offerings and blockchain.”
What do you think of Bitstamp’s abandonment of XRP for US customers and the letter from former commissioner Joseph Grundfest? Let us know your thoughts on this topic in the comments section below.
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