Coinbase’s move comes nearly a week after the US Securities and Exchange Commission (SEC)’s lawsuit against XRP’s original creator Ripple.
XRP’s delisting on Coinbase is striking as “XRP makes up a significant chunk of Coinbase’s trading volumes,” said The Block’s Larry Cermak.
Coinbase plans to suspend trading in XRP on Jan 19, 2021 at 10 AM PST in all regions on Coinbase, Coinbase Pro, and Coinbase Prime.
Coinbase said XRP trading will move into limit-only starting Dec 28, 2020, and will suspend fully on Jan 19 at 10 AM PST in all regions. Until Jan 19, customers can continue to trade XRP “as long as we have healthy trading books,” according to Coinbase.
The suspension will not affect Coinbase customers’ ability to access wallets with XRP. Customers will continue to be able to view their balances, deposit and withdraw XRP. There is no impact to Coinbase Custody, Coinbase Wallet, or Coinbase Commerce at this time.
Coinbase Supporting XRP Spark Airdrop
Regarding the duration of the trading suspension, Coinbase noted that will be in effect until further notice.
Moreover, Coinbase still intends to support Spark airdrop, subject to changes. “Coinbase has committed to facilitating the airdrop of Spark tokens to eligible XRP holders (subject to approval in certain jurisdictions) at a future date. We will update customers if that changes,” the blog post reads.
The SEC claimed last week that XRP is a security, and that Ripple has been selling it to American citizens without registering for seven years.
Additionally, the SEC claimed Ripple and two executives are in the wrong, because they were able to acquire over $1.3 billion from the unregistered securities sales of XRP.
In Ripple’s opinion, XRP is a currency, and so it doesn’t fall under the jurisdiction of the SEC.
Coinbase is the highest profile exchange to suspend XRP, but other exchanges have made similar decisions, following the SEC’s legal action.
Bitstamp announced it would halt XRP trading and deposits for all US customers on Jan 8. OKCoin announced its XRP suspension, effective Jan 4.