Coinbase announced their decision to suspend XRP trading beginning on January 19th at 10 a.m. PST.
XRP has now moved into limit only as of Monday, December 28th. The suspension will not affect deposits and withdrawals of XRP wallets.
This decision comes after the SEC (Securities and Exchange Commission) filed a lawsuit against Ripple and its top two executives just 5 days ago. The SEC claims $1.3 billion of unlicensed sales of XRP by Ripple to fund operations and startups.
The timing of Coinbase’s announcement is also significant as one of the world’s oldest and largest cryptocurrency platforms prepares for enlistment on the stock market. This would make Coinbase the first U.S-based crypto exchange included on Nasdaq.
Coinbase has filed with the SEC, so suspending Ripple is a precaution against any disruption in their approval.
This isn’t the first exchange to halt XRP activity. Bitstamp, a major European crypto exchange, also plans to stop trading and deposits on January 8th. B2C2, a crypto market-maker stopped XRP trading for U.S. customers on Thursday.
Since Coinbase’s announcement, XRP has dropped 35% to a low of .22 cents. Its market cap also decreased within 24 hours, from nearly $14 billion to $10 billion, however, it still holds as the 3rd largest crypto (excluding tether).