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US crypto exchange suspends XRP trading in light of SEC lawsuit

US crypto exchange suspends XRP trading in light of SEC lawsuit
Written by publisher team

A major US cryptocurrency exchange has suspended all XRP trading on its platform in the wake of the Securities and Exchange Commission’s ongoing lawsuit against Ripple Labs.

PayBito, which has processed $1.1 billion in transactions in the 24 hours to press time, will suspend all trading pairs of XRP, as announced on February 18. Historically, four XRP trading pairs were available on PayBito, with the XRP/USDT trades proving to be the most popular.

Raj Chaudhry, Managing Director of PayBito, said that the suspension of trading will not affect the holdings of users, and those who hold coins on the exchange will still be able to transfer them off the platform:

“Our decision to suspend XRP trading will certainly not affect our users’ access to factors such as security and compliance, allowing them to transfer XRP from their wallets to other exchanges.”

PayBito said it will continue to monitor the ongoing legal dispute between the SEC and Ripple Labs, indicating that it may re-trad XRP depending on the outcome of the lawsuit.

In December 2020, the Securities and Exchange Commission filed a lawsuit against Ripple Labs, alleging that the sale of XRP constituted a violation of securities laws. Ripple Labs continues to deny the allegations and has since asked the Securities and Exchange Commission (SEC) to explain why XRP is classified as a security, while ETH (ETH) is not. Officials from the Securities and Exchange Commission previously stated publicly that coins such as Bitcoin (BTC) and Ether were sufficiently decentralized to not represent securities issuances.

PayBito joins a long list of major exchanges that have chosen to stay away from XRP while the lawsuit is being filed. Binance.US, eToro, Coinbase, Bittrex and OKCoin have either halted XRP trading or delisted the coin altogether.