Ripple ban: XRP investor launches class action against Coinbase
Despite all the prophecies of doom, the price of the Ripple coin XRP is able to resist the sell-off and defend the 0.2 US dollar mark. With a price gain of 15 per cent, XRP even Bitcoin Loophole recorded a significant daily increase in the wake of the altcoin rally. And this despite the fact that the regulatory bad news is piling up – possibly soon also for exchanges that have offered XRP.
In between the years, eToro, the largest XRP broker in the USA, has now also announced that it will remove the digital asset from its offering for the time being. Similar steps had already been announced by numerous other bitcoin exchanges and brokers. Among them are big names like Coinbase Pro, Binance US, Bittrex or the DeFi platform Crypto.com.
Ripple ban: These companies stop XRP trading
Especially for US Americans, it is becoming increasingly difficult to find a broker or trading venue for XRP. Among the biggest platforms that have put XRP on hold for the time being are:
- Coinbase Pro
- Binance US
Leonidas Hadjiloizou, operator of the XRP news site XRPArcade, published a comprehensive chart on New Year’s Eve on the various measures brokers and exchanges have announced in light of the SEC complaint against Ripple.
According to this, the measures are limited to US citizens in many places. However, the effects are also being felt in Europe. On the one hand, the Swiss crypto broker Bitcoin Suisse has stopped its XRP support for the time being. On the other hand, the SEC’s push to classify XRP as a security has also had an impact on the 21Shares (formerly Amun) product range, a Swiss provider of crypto ETPs, some of which are also traded in Germany.
At the end of December, 21Shares announced it would remove XRP from its HODL5 index, which is made up of the five largest cryptocurrencies by market capitalisation. XRP previously ranked third in the HODL5 index, with a weighting of 10.5 percent, behind Bitcoin (55.81 percent) and Ethereum (27.63 percent). The company plans to announce which asset will succeed XRP in 21Shares‘ crypto ETPs with the next monthly rebalancing.
XRP investor initiates class action lawsuit against Coinbase
It is understandable that US crypto brokers and exchanges in particular are distancing themselves from the controversial Ripple asset. This is because Coinbase and Co., as US companies, face sanctions from the SEC if they continue to offer trading in an asset that is classified as a security by the authority.
But it is not only the US Securities and Exchange Commission that threatens consequences. In the case of Coinbase, an XRP investor has already initiated a class action lawsuit against the exchange. The accusation: Coinbase knowingly sold XRP investors a security with XRP without having the necessary licence and collected a commission for it. In doing so, the exchange violated Californian competition law. The plaintiff is therefore seeking damages for himself and other XRP investors who bought the asset through Coinbase. The case is now before the District Court of Northern California.
Ripple fans call on US government to act
Meanwhile, US XRP supporters have launched a citizen petition. The White House should put a stop to the SEC lawsuit against Ripple by recognising XRP as a currency. At the time of going to press, the petition had already gained 25,000 signatories. For the US government to take up the matter, a total of 100,000 signatures must be collected by 28 January.