As a recent report has it, Kraken has announced its plan to suspend the trading of the digital token XRP for users based in the United States in light of the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple.
According to the exchange in a statement published Friday 15th January, US-based customers will be unable to trade XRP from 29th January 2021 at 5 PM PT.
The exchange further added that those with spot positions on margin must satisfy any outstanding margin obligations by the close of 28th January to avoid liquidation.
However, they will still be able to deposit, hold, and withdraw XRP. The decision only affects U.S. customers — XRP markets will remain available to those outside the U.S.
The exchange said:
“We are monitoring the situation regarding the SEC’s filing and will adapt according to any new developments.”
On 22nd December 2020, SEC filed a lawsuit against Ripple, alleging that the firm’s sales of XRP qualified as an unregistered securities offering.
Since the suit was brought to the notice of the public, a number of exchanges and crypto-related firms, including Coinbase, Crypto.com, OKCoin, Bittrex, Binance.US, Galaxy Digital, Jump Trading, among others, have suspended or terminated their activity with the cryptocurrency.