Ripple token or XRP is an independent digital asset, native to the Ripple Consensus Ledger. Ripple is a real-time gross settlement system (RTGS), currency exchange and remittance network by Ripple. Also called the Ripple Transaction Protocol (RTXP) or Ripple protocol, it is built upon a distributed open source Internet protocol, consensus ledger and native currency (XRP).
Released in 2012, Ripple purports to enable “secure, instant and nearly free global financial transactions of any size with no chargebacks.” It supports tokens representing fiat currency, cryptocurrency, commodity or any other unit of value such as frequent flier miles or mobile minutes. At its core, Ripple is based around a shared, public database or ledger, which uses a consensus process that allows for payments, exchanges and remittance in a distributed process.
Japan is not the only country to have released a statement saying it does not recognize XRP has a security. Financial authorities in the United Kingdom have the same position.
The move from Bakkt further complements the decision of Coinbase and other exchanges including Binance US, OKCoin which had removed XRP coin from their platforms.
The Ripple executives view these XRP-related issues with the SEC as an attack on the entire cryptocurrency ecosystem.
The UK-based investment giant has stated that it plans to redeem its Series C stock as per the “contractual right”. Thus, it asks regulators to prevent Ripple from using its cash or other liquid assets until it clears the dues. Ripple says the lawsuit by Tetragon holds no merit.
The petitioners accused the SEC of causing remarkable damage to their XRP coin holdings which has tanked in value since it filed the lawsuit.
As per the court order from the US District Court of New York, both the parties have been asked to submit a joint statement with the case’s legal arguments, potential motions and likelihood of settlements.
Unfortunate year-end for Ripple continues as due to the US SEC lawsuit cryptoexchanges are delisting XRP.
Crypto.com noted that the delisting and trading suspension would not affect the withdrawal of XRP.
While the Ripple lawsuit was the last blow struck against the crypto industry by Jay Clayton, Ripple noted that it is open to working with the agency’s new leadership whenever they are appointed.
According to the announcement, the XRP deposit and trading would be disabled on January 4, 2021, as the lawsuit proceedings are taking place.
Some of the popular crypto exchanges have announced XRP trading suspension following the SEC lawsuit. This is seriously going to hurt XRP investors’ interest over a long period of time.
XRP price has crashed another 16% after the Bitstamp announcement as it slips below $0.30 today. While some of the Ripple partners have started distancing themselves from the company, a few XRP fans continue to offer strong support.
Earlier this month, Ripple sold $15 million of its MoneyGram stock while not giving any specific reason behind it.
The lawsuit is centered around XRP. The SEC described XRP as an unregistered securities offered to investors not only in the United States but also across the globe.
Digital assets manager Bitwise has liquidated $9.3 million worth of XRP and reinvested in other assets. Hong Kong’s OSL has suspended the asset from its platform. This is done in response to SEC’s lawsuit against Ripple Inc.