XRP price fell 41% on Binance over the past three days as news of the lawsuit by the United States Securities and Exchange Commission against Ripple became apparent. As a result, several small exchanges have already halted XRP trading.
So far, three small exchanges, namely OSL, Beaxy and CrossTower have either temporarily stopped trading or removed XRP.
Daily XRP price chart (Coinbase). Source: TradingView.com
More exchanges may delist XRP
According to prominent lawyers in the cryptocurrency industry, exchanges that listed XRP are at risk if the token is deemed a security.
Hailey Lennon, a partner at Anderson Kill, said:
“You know who is at risk if XRP is considered a security? EVERY EXCHANGE THAT LISTS XRP.”
The SEC alleges Ripple of paying money to exchanges to permit the “buying and selling of XRP” on their platforms.
The official lawsuit filed by the SEC said that Ripple entered into agreements with at least 10 digital asset trading platforms. The lawsuit reads:
“In 2017 and 2018, Ripple also entered into agreements with at least ten digital asset trading platforms — none of which were registered with the SEC in any capacity, and at least two of which have principal places of business in the United States — providing for listing and trading incentives with respect to XRP. Ripple paid these platforms a fee, typically in XRP, to permit the buying and selling of XRP on their systems and sometimes incentives for achieving volume metrics.”
If XRP is officially deemed a security, Lennon noted that the…