Cryptocurrency Exchange Coinbase, SEC, and Legal Aspects

The cryptocurrency exchange Coinbase made an important decision. Importantly, Coinbase will suspend trading for XRP in response to the U.S. Securities and Exchange Commission (SEC) filing charges against Ripple.

It is worth mentioning that, the major cryptocurrency exchange will fully suspend XRP trading on January 19, at 10:00, am PST. According to the exchange, trading may be halted earlier as needed to maintain the exchange’s market health metrics. Interestingly, besides, the interruption will reportedly not affect Ripple-backed Flare Network’s upcoming Spark (FLR) token airdrop.

Importantly, the decision made by the exchange, will not affect customers’ access to XRP wallets which will remain available for deposit as well as withdraw functionality after the trading suspension. Coinbase will continue to support XRP on Coinbase Custody as well as Coinbase Wallet.

Coinbase and other cryptocurrency exchanges

Interestingly, cryptocurrency exchange Coinbase is the largest so far to take a position on XRP following the December 22 announcement. As a reminder, the SEC took legal action against Ripple, CEO Brad Garlinghouse as well as co-founder Chris Larsen.

As stated above Coinbase was the only exchange to take a position on XRP. For example, cryptocurrency exchange OKCoin also made the decision to suspend XRP trading and deposits beginning on January 4. This is not the end of the story, as Bitstamp will also halt XRP trading for U.S. residents. Moreover, smaller exchanges including OSL, Beaxy, and CrossTower also decided to take similar measures.

As can be seen from the information mentioned earlier, several cryptocurrency exchanges made the decision to suspend XRP trading. It won’t be easy for Ripple to regain the trust of exchanges as well as customers. The federal district court’s decision will play an important role, if the SEC fails to win the case, it will be easier for Ripple to restore its reputation.