It was only a matter of time before it happened. Coinbase, one of the largest cryptocurrency exchanges in the U.S., announced its plans to suspend XRP trading on Jan. 19 in light of the U.S. Securities and Exchange Commission (SEC’s) enforcement action against Ripple.
In a blog post written by Paul Grewal, Coinbase’s Chief Legal Officer, the exchange said XRP trading will start moving into only starting Dec. 28 until the full suspension takes place on Jan. 19 at 10 AM Pacific Standard Time.
“In light of the SEC’s lawsuit against Ripple Labs, Inc., we have made the decision to suspend XRP trading pairs on our platform,” wrote Grewal.
The exchange added that the suspension will not affect users’ access to XRP wallets as they can still deposit and withdraw their tokens even after the trading suspension.
“Further, customers will remain eligible for the previously announced spark airdrop (subject to approval in certain jurisdictions), and we will continue to support XRP on Coinbase Custody and Coinbase Wallet,” the post continued.
The exchange pledged to continue monitoring the legal developments related to the lawsuit and update its customers as more and new information comes through.
A few days after the SEC announced its lawsuit against the company, it was reported that Coinbase was considering its options on the matter.
Coinbase suspension a major blow to XRP
Coinbase’s suspension of XRP trading pairs was a matter of “when” and not “if.” At this stage, the question that remains is who is next.
OKCoin recently announced that it will suspend XRP trading for the same reasons on Jan. 4. XRP took a nosedive after the announcement.
XRP was the third-largest cryptocurrency by market capitalization but dropped into the fourth position as a result of the lawsuit.
The digital asset is trading at $0.245, down nearly 15% in the last 24 hours, CoinMarketCap data shows.
As exchanges and partners distance themselves from the San-Franciso-based blockchain firm, the company is happy to know that they still enjoy the support of SBI Holdings, one of their most loyal partners based in Japan.
SBI pledged to continue supporting Ripple irrespective of the price of the XRP token. The financial company said it has invested in Ripple and not directly in XRP.
Before the lawsuit was filed, Ripple CEO previously said that the company was considering relocating to a more crypto-friendly territory such as the U.K.