It appears that Ripple’s regulatory troubles are just beginning because another blow has just been dealt to its XRP token; a prominent crypto market-maker recognized by the name of B2C2 has decided to stop offering its clients the option of trading the token. This comes amidst the huge controversy that’s now surrounding the XRP crypto coin by Ripple Labs. The US Securities and Exchange Commission (SEC) announced that it was filing a lawsuit against the company for what it believes to be an illegal coin offering. According to the SEC, XRP is not a crypto coin and the regulator has classified it as a security, unlike Ethereum (ETH) and Bitcoin (BTC), which has undoubtedly left Ripple Labs extremely frustrated.
Due to this looming lawsuit against the firm, a lot of companies have decided not to wait for the outcome of the case to make their moves. Therefore, some crypto market makers have begun to distance themselves from Ripple’s XRP token. The latest in the list is none other than B2C2, which had put a stop to XRP trading on its platform from Thursday onwards. This was confirmed by a representative of the company. The B2C2 firm had been founded last year for engaging the company’s US contemporaries and other clients.
A memo was delivered by the company for informing clients as well as other stakeholders of the company about its decision to stop offering the XRP token. The company also said that clients will be promptly notified if there were any changes made in the future. The SEC has already brought a lawsuit against Ripple and the case is expected to begin in the near future. The SEC has alleged in the lawsuit that Ripple had sold its XRP token for the last seven years and had managed to raise a total sum of $1.3 billion from retail investors during this time.
If the SEC emerges as the winner from this case, it could have a huge impact on the prosperity of the company as well as the XRP token. The token will end up becoming a pariah in the market because any platform that lists it will have to register itself as a security exchange because XRP will have to comply with all laws pertaining to securities. The SBI Group had made an announcement earlier this year about offering XRP as a stock to its shareholders. There is an increasing number of exchanges that are halting the trading of XRP, as the SEC is gearing up to take legal action against the token as well as Ripple itself.
Some of the others that have already delisted Ripple include OSL, Beaxy, Bitstamp and Cross Tower. Before the announcement by B2C2, US-based clients were able to trade XRP directly through its platform. However, all clients that are not based in the United States will have to fund all short trades before they are able to trade the token with the company. This move comes after similar ones were taken by others like Galaxy Digital and Jump Trading, which have also halted XRP trading on their respective platforms.