Following the lawsuit filed by U.S. SEC against Ripple, crypto market-making firm B2C2 terminated the trading of XRP with U.S.-based counterparties. The non-U.S. clients can, however, exchange the token but have to pre-fund all short trades. The shift mirrors comparable actions by trading firms such as Galaxy Digital and Jump Trading. They both halted their XRP market-making services.
The biggest market-making firm in the crypto market, B2C2 functions in the U.S. via the B2C2 USA. The unit, which began in 2019, employs B2C2’s U.S. counterparties and earlier warned clients in a notice this week that the firm may take additional trading actions in respect to XRP products.
Moreover, B2C2 is the most recent company to halt XRP trading services since it was penalized with a $1.3 billion lawsuit. On Tuesday, the U.S. SEC-registered a lawsuit against the company, claiming that it had raised $1.3 billion in unregistered securities offerings since 2013. Ripple Labs refutes the allegation that it raised funds illegally.
Ripple’s XRP faces substantial issues after the SEC lawsuit.
After the lawsuit, XRP is facing various concerns. Its price is cascading down, resulting in a drop in market dominance. Moreover, several exchanges don’t want to engage with the asset. Bitstamp is by far the most prominent exchange to distance itself from XRP. Recently, it declared that U.S. consumers would not be capable of trading the currency. At the time of reporting, XRP’s price was trading at $0.289651. This indicates a fall of 5.27% in 24 hours, according to CoinMarketCap.
Further, SBI Holdings, which declared its takeover of B2C2 earlier this month, has a different relationship with XRP and Ripple. SBI is one of Ripple’s leading investors. It participated in the firm’s $200 million Series C. Earlier; Ripple funded MoneyTap, an SBI Holdings subsidiary. The association is famous for offering to fund the MoneyTap app. It uses Ripple’s blockchain technology to treat cross-border payments quickly and cost-efficiently. By utilizing MoneyTap, it is possible to manage and accept payments substantially in real-time by scanning a QR code individually. Further, Japan’s driving banking consortium SBI Holdings backs the MoneyTap app.
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