Ripple’s XRP regulatory troubles have continued as a major crypto market-maker B2C2 has stopped offering XRP trading on its platform. This is coming amidst the controversy surrounding the XRP crypto coin.
The US Securities and Exchange Commission (SEC) is filing a lawsuit against Ripple for what it perceives as an unlawful coin offering. Ripple has been left frustrated by the fact that XRP has not been accepted by the SEC as security, unlike Bitcoin (BTC) and Ethereum (ETH).
And with the looming lawsuit against the company, some crypto market makers are starting to distance themselves from Ripple owned XRP. Now, the US-based B2C2 firm stopped trading XRP on Thursday, as confirmed by a representative of the firm.
The B2C2 firm was launched last year, to engage B2C2’s US contemporaries and other clients. It delivered a memo to inform clients and other stakeholders in the company that it may decide on its XRP offerings.
“We will promptly notify clients of any future developments,” the firm stated.
XRP could become a pariah token
SEC has already filed the lawsuit against Ripple, and the case will begin very soon. According to the lawsuit, Ripple conducted the sale of its XRP and raised $1.3 billion from retail investors over seven years.
If the SEC wins the case, it could have a massive effect on the prosperity of Ripple and its token. The token can be seen as a pariah token since any platform that lists the token will be required to register as a security exchange.
More firms are delisting XRP
Earlier in January, SBI Group announced an option that will see shareholders receive XRP as a stock. The number of cryptocurrency exchanges halting the trading of XRP is increasing, as the SEC prepares to take legal action against the crypto coin and its owner Ripple.
Other cryptocurrency exchanges that have halted XRP trading include Cross Tower, OSL, Bitstamp, and Beaxy.
Before the Thursday announcement, US-based clients could trade XRP directly through B2C2. It also needs clients who want to close their XRP positions to execute such trade using voice protocol.
But non-US clients are required to fund all short trades before they are allowed to trade XRP with the firm. The move is coming after similar moves taken by companies like Jump Trading and Galaxy Digital, which both stopped offering XRP trading on their platform.
SBI has some partnership agreements with Ripple and XRP. The firm, which recently acquired B2C2, participated in the company’s $200 million Series C funding. It has also invested in some of the projects run by Ripple.