In a significant industry development, the U.S.-based cryptocurrency exchange Bittrex has announced the delisting of XRP, joining several other major trading platforms in response to the recent lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple Labs Inc.
Bittrex formally notified its users that all XRP trading markets would be removed on Friday, January 15, 2021. The affected trading pairs include BTC-XRP, ETH-XRP, USDT-XRP, and USD-XRP. The exchange clarified that while trading would be halted, users would retain access to their XRP wallets on the platform for withdrawals until further notice.
This decision has intensified selling pressure on XRP, causing its price to drop significantly. On Tuesday, the asset’s value fell below $0.18, briefly losing its position as the fourth-largest cryptocurrency by market capitalization to Litecoin. At the time of writing, XRP had declined by more than 10% over a 24-hour period.
Industry-Wide Response to Regulatory Pressure
Bittrex is among a growing list of crypto service providers distancing themselves from XRP. Earlier, leading U.S. exchange Coinbase also confirmed it would suspend XRP trading, a move that has had a considerable market impact.
These reactions stem from the SEC’s allegation that Ripple conducted an unregistered securities offering worth over $1.3 billion through its sales of XRP. The case has created widespread uncertainty, prompting many regulated entities to preemptively remove or limit XRP trading to avoid potential regulatory repercussions.
Ripple’s Defense and Public Response
Ripple has publicly criticized the SEC’s actions, arguing that the lawsuit is not just an attack on the company but on the entire cryptocurrency industry within the United States. The company has urged the market to consider its perspective, stating that stakeholders have so far only heard the SEC’s side, which is based on what Ripple calls “unproven allegations.”
In an official statement, Ripple expressed that the SEC’s lawsuit has harmed countless retail XRP holders who have no connection to Ripple. The company also accused the regulator of creating unnecessary confusion for exchanges, market makers, and traders, thereby introducing new market uncertainties.
Ripple has committed to continuing its operations and serving its customers globally, including in the U.S., while it prepares to defend itself in court. The company emphasized its intention to seek clarity for the crypto industry through the legal process and to engage with new leadership at the SEC once they are appointed.
Market Impact and Trader Sentiment
The delisting announcements have led to a sharp decline in investor confidence. Many traders are liquidating their holdings due to fears of reduced liquidity and further exchange suspensions. The situation remains fluid, and market participants are closely monitoring whether other platforms will follow suit.
Despite the negative short-term outlook, some members of the community believe that a favorable court outcome for Ripple could restore legitimacy and value to XRP. Until then, however, volatility and uncertainty are expected to persist.
For those looking to monitor these developments in real-time, a number of analytical resources are available. 👉 Track real-time cryptocurrency updates
Frequently Asked Questions
Why is Bittrex delisting XRP?
Bittrex is delisting XRP in response to the U.S. SEC's lawsuit against Ripple, which alleges that XRP is a security. This has created regulatory uncertainty, leading several exchanges to suspend trading.
Can I still withdraw my XRP from Bittrex after delisting?
Yes. Bittrex has stated that users will retain access to their XRP wallets for withdrawals after trading is disabled, although no specific end date for withdrawals has been announced.
How has the XRP price been affected?
The price of XRP has declined significantly since the lawsuit was announced, falling below $0.18 and losing its spot as the fourth-largest cryptocurrency by market cap amid widespread sell-offs.
Is Ripple still operating?
Yes, Ripple has stated it will continue to operate and support all its products and customers globally, including in the U.S., while it defends itself in court.
What other exchanges have delisted XRP?
Along with Bittrex, major exchanges like Coinbase have also announced the suspension of XRP trading. Several over-the-counter trading desks and liquidity providers have also taken similar steps.
What is Ripple’s response to the SEC lawsuit?
Ripple denies the allegations and argues that the SEC’s lawsuit is damaging to the entire crypto industry. The company intends to fight the case in court and seek regulatory clarity.