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Coinbase to Suspend Trading in XRP

reuters.com

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Re: Coinbase to Suspend Trading in XRP

#21

Post by revel »

academi wrote: post #18
revel wrote: post #13

Terrible news for XRP and Ripple but nobody can be surprised by this. Next up we may see the delisting of some stable coins given the SEC's advice about establishing a nexus in the US. I'm not sure how this will work for a decentralized coin like maker / dai, so perhaps this is the end for them. However, this seems consistent with other regulation since they operate like an autonomous fx swap fund.

I’m surprised, because I don’t see how it contributes to the market.

This provides clarity on what constitutes a security. The SEC have been telegraphing this move for several years, ever since the crackdowns on ICOs and STOs. Bitstamp said they would delist XRP several days ago so coinbase are hardly unique in their response to the SEC's announcement.

Re: Coinbase to Suspend Trading in XRP

#22

Post by SlipperySlope »

Back in 2015 FinCEN (US Financial Crimes Enforcement Network) issued guidance that an administrator of a digital virtual currency had to be a Money Services Business and file Suspicious Activity Reports, perform Know Your Customer and comply with Anti-Money Laundering regulations. So Ripple filed and became an MSB in the 50 US States. So far so good.

But Crypto is more than a payment method. Obviously it is purchased in hopes of capital appreciation and that makes it a Security.

Accordingly, Ripple should have filed a S-1 security disclosure application with the SEC BEFORE issuing XRP.

Failure to register XRP as a security should lead to big fines.

So why does the US SEC leave Bitcoin and Ethereum alone?

Because there is no central administrator that issues and redeems the tokens.

Ideally, crypto tokens should file with the US SEC and their exchanges should be MSBs - like Coinbase.

Meanwhile Coinbase is pursuing becoming a dealer in registered securities because crypto tokens are both payment tokens and securities. In addition to filing suspicious activity reports to FinCEN, Coinbase will file insider trading reports to the SEC.

Fully regulated Crypto is not a bad thing - unless you are an anarchist or criminal. Fully regulated crypto plugs easily into the existing payment and security networks, bringing huge efficiencies and trust.

Sad for Ripple but a good lesson on how not to launch and run a token.

Re: Coinbase to Suspend Trading in XRP

#23

Post by liquidise »

gotem wrote: post #7
mariocesar wrote: post #5

Earlier quoted context omitted.

> Cryptocurrency exchange Coinbase Inc said on Monday it would suspend trading in cryptocurrency XRP after U.S. regulators last week charged associated blockchain firm Ripple with conducting a $1.3 billion unregistered securities offering. It reads to be a good reason to suspend XRP trading

Sorry, missed that somehow. Still seems oddly suspicious that it coincides with Coinbase's IPO.

I don't follow the logic here. Cryptos biggest battle (and thus Coinabse's battle by proxy) has been legitimacy. A listed coin coming under SEC ire and Coinbase banning said coin actively harms their IPO, not assists it.

Re: Coinbase to Suspend Trading in XRP

#24

Post by etrabroline »

briefcomment wrote: post #10
kylebenzle wrote: post #2

They never should have allowed it in the first place. By testing the waters of trading custodial currencies they were really pushing the limits. BTC has been a joke ever since the GitHub repo was hijacked by Blockstream and Adam Back. The only interesting cryptocurrencies are Ethereum, Bitcoin Cash and Monero. The rest are either obvious scams or dead ends at this point. A lot of people were holding out hope for dece…

> “BTC has been a joke ever since the GitHub repo was hijacked by Blockstream and Adam Back” Could you spell out the implications of this?

Wall Street doesn't want Bitcoin to serve its intended purpose of removing their control over the money supply. They did this by co-opting the software project with venture capital money and making technical decisions that make Bitcoin ecommerce economically infeasible due to high fees. Initially they intended to replace Bitcoin with an alt-coin whose issuance was controlled by the Blockstream corporate entity. That project failed, and wall street investors pivoted to another alt-coin called Lightning that has failed to produce a reliable payment network after 7 years of investment, all the while the BTC fork remains unusable, which they are just fine with.

EDIT: The Lightning network markets itself as an improvement to Bitcoin, but it is a completely alternative settlement network that just happens to denominate in BTC. I don't think debating the use of the term "alt-coin" is material.

Re: Coinbase to Suspend Trading in XRP

#25

Post by dnpp123 »

IMHO good move for the ecosystem overall.

Beyond that, the formulation is really funny (bad?) though:

> Trading will move into limit only starting December 28, 2020 at 2:30 PM PST, and will be fully suspended on Tuesday, January 19, 2021 at 10 a.m. Pacific Standard Time

Assuming limit only == post only orders (which sounds like it in the sentence), how do you expect the trading to work?

Re: Coinbase to Suspend Trading in XRP

#26

Post by ceejayoz »

logicslave wrote: post #8
kylebenzle wrote: post #2

They never should have allowed it in the first place. By testing the waters of trading custodial currencies they were really pushing the limits. BTC has been a joke ever since the GitHub repo was hijacked by Blockstream and Adam Back. The only interesting cryptocurrencies are Ethereum, Bitcoin Cash and Monero. The rest are either obvious scams or dead ends at this point. A lot of people were holding out hope for dece…

I thought filecoin had a successful launch?

https://www.axios.com/filecoin-blockchain-delay-3b5e6b9a-bcc...

Re: Coinbase to Suspend Trading in XRP

#27

Post by tastyfreeze »

revel wrote: post #21
academi wrote: post #18

Earlier quoted context omitted.

I’m surprised, because I don’t see how it contributes to the market.

This provides clarity on what constitutes a security. The SEC have been telegraphing this move for several years, ever since the crackdowns on ICOs and STOs. Bitstamp said they would delist XRP several days ago so coinbase are hardly unique in their response to the SEC's announcement.

Bitstamp isnt delisting XRP. Just halting XRP trading for US customers.

https://www.bitstamp.net/news/

Re: Coinbase to Suspend Trading in XRP

#29

Post by [deleted] »

tastyfreeze wrote: post #27
revel wrote: post #21

Earlier quoted context omitted.

This provides clarity on what constitutes a security. The SEC have been telegraphing this move for several years, ever since the crackdowns on ICOs and STOs. Bitstamp said they would delist XRP several days ago so coinbase are hardly unique in their response to the SEC's announcement.

Bitstamp isnt delisting XRP. Just halting XRP trading for US customers. https://www.bitstamp.net/news/

[deleted]

Re: Coinbase to Suspend Trading in XRP

#30

Post by pontus »

dnpp123 wrote: post #25

IMHO good move for the ecosystem overall. Beyond that, the formulation is really funny (bad?) though: > Trading will move into limit only starting December 28, 2020 at 2:30 PM PST, and will be fully suspended on Tuesday, January 19, 2021 at 10 a.m. Pacific Standard Time Assuming limit only == post only orders (which sounds like it in the sentence), how do you expect the trading to work?

Assuming you could still have limit orders cross the spread maybe?
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