eToro is suspending XRP trading in the US

Crypto-friendly brokerage firm eToro USA is suspending XRP trading on January 3.

The decision comes in light of the recent lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple. eToro U.S. customers have until January 24 to sell their existing XRP holdings.

After that date, they can either hold or transfer their XRP to an eToro wallet at any time. Customers can also transfer XRP to any external wallet address from their eToro wallets.

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To be sure, the restrictions only apply to eToro's U.S. customers and not global customers.

Since the SEC lawsuit, crypto trading platforms have continued to disassociate themselves from XRP, including Coinbase and Binance.US.  Yesterday, Coinbase was hit with a class-action lawsuit for profiting from the sale of XRP. The plaintiff claimed that Coinbase allowed trading in XRP while knowing that it was a security.

The SEC views XRP as a security and has alleged that Ripple and two of its executives — CEO Brad Garlinghouse and co-founder Chris Larsen — have raised billions of dollars via an ongoing unregistered securities offering of XRP. Both parties of the case are set to dial-in for an initial pretrial conference on February 22.

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Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.