Bitstamp, one of Europe’s largest cryptocurrency exchanges, responded yesterday to the US Securities and Exchange Commission’s (SEC) action against Ripple Labs. The trading and deposit of XRP will be suspended for all US customers from January 8th. In a press release, Bitstamp reported:
However, US customers will be able to withdraw XRP from Bitstamp, as the Luxembourg-based exchange announced. Customers in other countries will not be affected. After three much smaller cryptocurrency exchanges have so far reacted to the decision with CrossTower, Beaxy and OSL, Bitstamp is now the first well-known exchange. Bitstamp is currently the seventh largest spot exchange in the world, according to Coinmarketcap.
Sarson Funds Removes XRP From Its Products
However, not only cryptocurrency exchanges but also mutual funds are currently reacting to the SEC’s complaint against Ripple Labs. Two days ago, three famous crypto investment companies Galaxy Digital, Jump Trading and Bitwise reported that XRP trading has been suspended or stopped.
As we previously reported, the SEC filed a lawsuit Tuesday against Ripple Labs and its two executives, CEO Brad Garlinghouse and co-founder Chris Larsen, accused of collecting more than $ 1.3 billion through an ongoing unregistered securities sale. As a result of the lawsuit, cryptocurrency exchanges around the world may have to stop trading XRP. Otherwise, those who listed the token on their platform could face a different case if the SEC wins the case and the court classifies XRP as an unregistered security.