Uphold Will Resist SEC’s Lion-Like Hunger for XRP

Uphold Will Resist SEC’s Lion-Like Hunger for XRP

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Key Takeaways Uphold says that it will not delist XRP despite the SEC’s current lawsuit against Ripple.

It will only do so if the SEC declares unequivocally that XRP is a security, or if trading volumes decline to an unreasonable point.

Meanwhile, Blockchain.com and several other exchanges plan to delist XRP for the time being.

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Uphold has revealed its stance on XRP delisting in the wake of the U.S. Securities and Exchange Commission’s lawsuit against Ripple.

Uphold Will Not Delist XRP

Uphold has stated that it will not delist XRP despite the regulatory threats that Ripple currently faces.

J.P Theriot, co-founder and CEO of Uphold, says that the exchange will continue to list XRP “until and unless the Complaint is adjudicated against Ripple.” That means that the U.S. Securities and Exchange Commission will need to explicitly state that XRP is a security in order for Uphold to delist it.

He adds that the exchange would also delist XRP if trading volumes fell to a low level that would make supporting the coin impractical. That criteria does not appear to be the case right now, as XRP is currently the fourth most-traded cryptocurrency with a 24-hour volume of $12.6 billion.

Theriot also noted that while the SEC is a “lion” that protects consumers, its actions could harm Ripple, XRP investors, and blockchain innovation in a broader sense. “Perhaps the innovator in question [Ripple] poked the lion and got swatted,” Theriot wrote.

“Now we have to see whether the lion gets up and finishes the job, or returns its attention to more likely (and deserving) next meals,” he concluded, alluding to the many fraudulent enterprises that have been shut down by the SEC in recent years.

Theriot says that Uphold hopes that the resolution of the XRP complaint will create more clarity for the blockchain industry.

Delistings Are Widespread

Several other exchanges have also recently announced their policy on Ripple’s SEC lawsuit and delistings. Coinbase, OKCoin, Bitstamp, Bittrex, Binance.US, 21shares, and a number of other exchanges have chosen to delist XRP, at least for the time being.

Blockchain.com, meanwhile, has revealed that it will halt XRP trading beginning on Jan. 7 at 11:59pm GMT. This is earlier than the previously announced date of Jan. 14.

Blockchain.com told Crypto Briefing that low volumes were the reason for the prompt delisting: “While we initially set January 15th as the trading halt date for XRP to give our customers as much notice as possible, we’ve determined that interest in trading XRP is lower than expected,” the firm said.

The firm says that users will still be able to access XRP after that time, but they will not be able to deposit XRP. It also says that adding and removing support for XRP is an “ongoing process,” and that it will continue to monitor developments surrounding XRP.

Ripple announced that the SEC had plans to file a lawsuit against it on Dec. 22. The SEC argues that the firm’s XRP sales constitute an unregistered security offering, a claim that Ripple plans to contest.

Legal proceedings against Ripple will begin in mid-February, according to recent court filings.

This article has been updated with a statement from Blockchain.com.

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Crypto Exchange Uphold Is Standing By Ripple’s XRP. Here’s Why

In brief Uphold announced today that it will not delist or halt trading for XRP, despite the ongoing SEC lawsuit.

CEO JP Thieriot says the SEC’s actions could have dire consequences for the crypto market as a whole.

Most leading US crypto exchanges have already moved to limit or remove XRP trading.

Most cryptocurrency investors and traders have had plenty of reason to celebrate throughout December and the new year. But the XRP Army is still looking its wound after the US Securities and Exchange Commission filed suit against crypto payments firm Ripple, alleging that XRP is, in fact, a security and that the company’s sales of the asset were illegal.

Since the lawsuit was filed two weeks ago, the price of XRP has dropped sharply—just when the crypto asset appeared poised to recover from its status as “worst-performing cryptocurrency” in the top 10 for two years running.

While most major crypto exchanges, such as Coinbase and Binance.US, have already moved to either delist or halt trading for the token, there’s at least one that is bucking the trend. Uphold, an “anything to anything” exchange that’s done about $8 billion in cumulative trading volume (according to its own figures), will not take any action to change its course on XRP until there’s a definitive ruling against it.

Innocent until proven security

In a statement today, the company announced that it would continue to support XRP until a final judgment declares the token a security.

“We trust that other Exchanges will adopt a similar stance rather than rushing to judgement ahead of the Court’s decision,” Uphold said, perhaps taking a shot at its competitors that have preemptively taken action to presumably avoid regulatory scrutiny themselves.

Uphold further criticized the SEC’s action, suggesting that the consequences of its lawsuit could be very harmful to crypto investors: “An important part of the SEC’s remit is the protection of consumers. It is hard to see how a judgment sending XRP to zero and inflicting billions of dollars of losses on retail investors would square with that remit.”

Uphold’s CEO, JP Thieriot, had previously expressed a similar view on Twitter last week. Besides stating that this firm would not delist XRP, Thieriot also cautioned against the rush to judgement on XRP, and the potential effects that classifying it an illegal security would have on the market as a whole.

(1/8) Uphold hopes that due process resolution to the SEC/Ripple dispute can both set the goalposts for token offerings going forward, as well as clear the fogbank of uncertainty that now presumably settles over the Stellars and Filecoins of the world, if not ETH itself. — JP Thieriot (@JpThieriot) December 30, 2020

“What if punishing the actions of a couple of parties not only directly harms XRP holders (most of whom probably assumed tacit approval after seven years of inaction) but also threatens to harm participants in similar projects?” Thieriot asked in a tweet.

Besides Uphold, there are a handful of other trading platforms that operate in the US that are taking a “wait and see” approach to XRP for the time being. BTC Markets, for example, has said it has no plans to drop XRP at the moment, despite the SEC lawsuit. And Revolut, while cautioning its users that XRP “could drop to zero,” isn’t halting trading yet either, according to the Irish Times.

Uphold will not delist XRP before court decision

Cryptocurrency payments processor and exchange operator Uphold has formally clarified that it will not delist XRP for the time being.

As part of an announcement made on Monday, Uphold stated it will not be removing XRP from its crypto offerings until the lawsuit filed by the United States Securities and Exchange Commission is resolved.

“Uphold has decided to continue listing XRP until and unless the SEC’s Complaint is adjudicated in the SEC’s favour and XRP is judged to be a security today (or trading volume dissipates to a point where we can no longer support XRP).”

The exchange noted that the lawsuit against Ripple and its executives is an allegation, and no U.S. court of law formally deemed XRP a security. “We trust that other Exchanges will adopt a similar stance rather than rushing to judgement ahead of the Court’s decision,” the announcement reads.

The exchange has also questioned the SEC’s heavy-handed action against Ripple, which has sent the price of XRP on a powerful downward plunge. XRP lost more than 50% of its value since rumors about the enforcement began circulating, from about $0.57 to $0.23 as of press time.

The losses have been compounded significantly by a string of delisting announcements by major exchanges, first Bitstamp, then Coinbase, Binance.US and eToro. Major hedge funds and institutional service providers like Bitwise and Genesis Trading have likewise dropped support for the asset.

The delistings were largely seen as a precautionary measure to protect against regulatory risk. The lawsuit is still in its earliest stages, with a pre-trial virtual hearing scheduled for Feb. 22.

In the meantime, Ripple has vowed to defend itself against the SEC. Likewise, a host of community members are drumming up support through petitions and class-action motions.

Cointelegraph reached out to Uphold for comment but did not immediately receive a response. The article will be updated should more information come through.