The lawsuit was filed on December 22, one day before former SEC Chairman Jay Clayton resigned, and names Ripple’s two of its executives, who are also significant security holders, alleging that they “raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.”
Uphold has decided to continue listing XRP unless and until the SEC’s complaint against Ripple is adjudicated to legally determine that XRP is currently a security, or until trading volume dissipates to a point where we can no longer support XRP.
Uphold added it trusts other cryptocurrency exchanges to “adopt a similar stance rather than rushing to judgement ahead of the court’s decision.” It further pointed out that the SEC’s goal is to protect consumers, and believes it’s hard to see “how a judgement rendering XRP essentially worthless and inflicting billions of dollars of losses on retail investors” would square with that goal.
Ripple has also argued that the SEC’s lawsuit has hurt “countless innocent XRP retail holders with no connection to Ripple,” and added it “muddied the waters for exchanges, market makers, and traders.” The price of XRP, according to available data, plunged from about $0.60 to $0.23 at press time after rumors the SEC’s lawsuit was coming started circulating.
The token’s price had been inflated thanks to Flare network’s Spark token airdrop in early December. XRP’s plunge was accelerated by a string of delisting announcements from major cryptocurrency exchanges, including Bitstamp, Coinbase, Binance.US, Bittrex, and others.
Asset managers, market makers, wallets, and brokers soon stopped supporting XRP as well.
XRP supporters have, meanwhile, launched petitions and class action motions to support Ripple in its fight against the SEC.
Featured image via Pixabay.