A major US cryptocurrency exchange has halted all XRP trading on the platform after an ongoing lawsuit from the SEC against Ripple Labs.
The PayBito exchange, which processed $ 1.1 billion in trades in the 24 hours before publication, will suspend all XRP trading pairs as announced on February 18th. Four XRP trading pairs were historically available on PayBito and XRP / USDT and it proved to be the most popular trading.
In particular, the trading suspension will not affect users’ holdings, and those who have coins on the exchange will still be able to transfer them from the platform, said Raj Choudhury, CEO of PayBito:
“Our decision to suspend XRP trading will certainly not affect users’ access to security and compliance factors, allowing them to transfer XRP from their portfolios to other exchanges.”
PayBito said it will continue to monitor the ongoing legal dispute between SEC and Ripple Labs, indicating that XRP trading can be restored depending on the outcome of the lawsuit.
In December 2020, the SEC filed a lawsuit against Ripple Labs, alleging that selling XRP coins violated securities laws. Ripple Labs continues to deny the allegations and has since demanded the Securities and Exchange Commission (SEC) explain why XRP is classified as collateral while ETH (ETH) is not. SEC officials previously publicly stated that coins such as Bitcoin (BTC) and Ether were decentralized enough not to raise security concerns.
PayBito joins a long list of major exchanges that have chosen to steer clear of XRP while the lawsuit is in progress. Binance.US, eToro, Coinbase, Bittrex and OKCoin either halted XRP trading or removed the coin entirely.