Immediately two large market makers Galaxy Digital and Jump Trading, as well as the payment company Simplex, announced the suspension of work with XRP and the blocking of transactions with this crypto asset.
This decision is related to the lawsuit filed by the US Securities and Exchange Commission (commonly referred to as SEC) against Ripple. The regulator accuses Ripple’s management of conducting an unregistered ICO worth $1.3 billion. The company’s CEO, Brad Garlinghouse, noted that the SEC’s lawsuit against Ripple is an attack on the entire cryptocurrency industry.
Jump Trading is one of the most active market makers for cryptocurrency exchanges. While there hasn’t been an official announcement yet, several sources at The Block have reported that the company is stopping the supply of liquidity in pairs with XRP. Galaxy Digital, which is also a significant liquidity provider, has announced it is suspending XRP trading until further notice.
“We have suspended trading, but we continue to assess the situation as new facts emerge,” said a spokesman for Galaxy Digital.
As for the Simplex company, it provides services for buying cryptocurrencies with credit cards. In addition, the payment firm’s services are integrated across many cryptocurrency platforms including Huobi, Binance, BitPay, and KuCoin. Users will no longer be able to buy XRP through Simplex.
The decision of large market makers will significantly complicate trading with XRP, the spread will grow and volatility in pairs with an asset may increase. Earlier, the regulated platform OSL from Hong Kong announced the temporary suspension of trading in XRP pairs and all operations with a crypto asset.
