October 3, 2022

Bitwise Liquidates XRP Position After Ripple’s SEC Lawsuit

2 min read

Bitwise has liquidated its XRP position from its institutional crypto index of ten cryptocurrencies.

Three other cryptocurrency exchanges—– OSL, Beaxy, and CrossTower—– have likewise halted XRP trading after SEC charges Ripple for an “& ldquo; ongoing & rdquo; sale of prohibited securities.

XRP Driven Out of US

Exchanges have started stopping XRP trading because of the SEC’s suit versus Ripple. These exchanges’ users can withdraw XRP from their accounts, but trading is suspended till there is more clearness to the situation.

Bitwise has chosen to omit XRP from the Bitwise 10 Crypto Index Fund, launched earlier this month. The news release for exclusion checks out:

“& ldquo; The Bitwise 10 Crypto Index Fund does not invest in assets that are reasonably most likely to be considered securities under federal or state securities laws.”

& rdquo; The SEC’s legal filing has actually accused Ripple and 2 of its founders, Chris Larsen and existing CEO Brad Garlinghouse, of participating in the “& ldquo; continuous & rdquo; sale of unregistered securities.

Investors are confident of a bull run if the suit gets settled with a fine, similar to others in the past, for example, EOS. Nevertheless, some professionals have actually also specified that the lawsuit versus Ripple is far graver.

The case may run for months or perhaps years, and U.S. exchanges may delist XRP to secure themselves from related lawsuits.

If XRP is considered a security, exchanges would require a license from the Financial Industry Regulatory Authority (FINRA). Currently, most of these avenues are running as Money Transmitter Businesses (MSBs).

XRP Ripple Price Chart
< img loading="lazy"src="https://lh4.googleusercontent.com/Ba0s8LTSmrgCkJUA6W1pfv_1vLm_em-5TzcG6SBiw0fPjnM9IjU8T5N9JRxQXVU_IahSKZ3IVAzbjF1cxtWUnY2TIChEgB5PpM25glwgqHk3dM4GilufxCGNplg7v9EHuAFMDZj7"alt="XRP Ripple Price Chart"width="1200"

height=”1200″ > Source: CoinGecko The liquidity of the cryptocurrency will drain pipes in mere months if the above scenario plays out. XRP rate dropped 36% to lows of $0.3 after the court filing was released, sliding down one area to end up being the fourth-largest cryptocurrency by market capitalization.