Cryptocurrency XRP, owned by blockchain payments firm, Ripple Labs Inc. has been facing the heat from the U.S. SEC in the form of a securities lawsuit filed against Ripple back in December 2020. This legal battle has been causing a strain on the liquidity diversification of XRP, leading Ripple to remove the coin from its Liquidity Hub as well. Lawyer Bill Morgan had tweeted regarding the same, implying that Coinbase, who also delisted XRP following the lawsuit, would not be relisting it either. Attorney John Deaton, who is fighting for the rights of XRP holders agreed with Morgan's statement as it relates to Ripple's inactive role in supporting the coin.
Deaton shared further detail as to why Ripple was not keeping the coin in its Liquidity Hub and mentioned the uncertainty surrounding XRP, making it difficult to include it in crypto-related payment transactions. He argued that a positive outcome is anticipated in the summary judgment and that public interest on the case is very high, given his amicus brief he submitted in the case and the affidavits from 3,500 investors in 143 countries. Deaton did not entertain any speculation regarding possible private meetings or settlement negotiations between the SEC and Ripple either. This case could go on to have far-reaching implications on the cryptocurrency market if further regulation is imposed as companies and users have so far enjoyed a degree of autonomy.
Eva Perez
- 2023-05-05
Ripple Delists XRP From Its Liquidity Hub Amid SEC Case
A securities lawsuit filed against Ripple Labs Inc by the U.S. SEC has caused a strain on the liquidity diversification of XRP, leading Ripple to remove the coin from its Liquidity Hub. Attorney John Deaton provides further insight on the implications of the case, and the possibility of the SEC imposing more regulation on the cryptocurrency market.
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