eToro Halts XRP Trading For US Citizens Following The SEC Charges
eToro is the newest company to suspend XRP trading in the United States. The lawsuit filed against Ripple Labs on the sale of cryptocurrency by the Securities and Exchange Commission.The eToro team quoted the lawsuit in an update as the cause of the suspension but stressed that it only affected its U.S. customers at present. XRP’s purchases on eToro platforms are prohibited and XRP conversions held in an eToro wallet on January 3 are prohibited. Positions must be closed until 24 January.
Users can still hold XRP tokens in the eToro wallet and transfer them on the blockchain to any other wallet. While the move applies exclusively to US customers, eToro warns others that the sting may feel. They would like to highlight liquidity issues potentials, i.e. executing $XRP orders, which can interrupt or stop existing positions. Due to extreme market conditions, we may also see significant spreads.
The company encouraged users to maintain “different investment portfolios” and reminded them that the platform offers inventories, ETFs, commodity products, indices, and more if they wish to diversify their holdings. eToro added that it will continue to monitor and update its users’ legal developments with regard to XRP.
As reported by the company other key trading platforms, including Coinbase and Crypto.com, CryptoGlobe has already announced XRP trading suspensions after an announcement was made of its action. XRP’s trading may not be carried over globally if it determines, either market, regulation, or other conditions warrant that such action.
On 22 December the SEC announced the withdrawal of the former SEC Chairperson, Jay Clayton, on an alleging that it had applied for the provision of over $1.3 billion via an unregistered, constant digital asset securities offering, against Ripple Labs Inc. and two of its executives, which are also important security holders.
Almost immediately after the charges became official, the digital asset sensed the adverse effects of the SEC decision. In the following days, the price dropped by around 70% and was unable to bounce as various exchanges of cryptographs ran to drop the token.
After the beginning of the new year, Ripple was able to regain traction and jumped several times higher than $0.35. However, it continues to push the recent crash in the market and the news of further exchanges removing the coin.
When these lines were written, XRP prices rectified below $0.30 following the latest failure to overcome the level.