If you’ve heard about the Ripple (XRP) suspension, you may be wondering what happened to cause it. Essentially, it was suspended because the SEC has stated it believes the cryptocurrency to actually be secure. However, the company hasn’t been operating that way and hasn’t asked for any kind of exemption. Because of that, it’s simply been making a profit that the SEC believes has been handled incorrectly. That’s unfortunate for Ripple, and also for the people who were buying, selling, and trading it. Here’s what to know about this cryptocurrency, which was suspended back in January 2021.
Ripple Can Still be Accessed
If you’ve been searching for the Rubix Exchange – Ripple option, you’re probably finding that you can still get to it in your wallet if you’ve already purchased it. People who made legitimate purchases of the cryptocurrency aren’t going to have it taken away from them because they’re not the ones the SEC is saying are at fault. There’s also still some trading going on with XRP, but it’s limit-only and doesn’t look like it will change anytime soon. The people who want to continue with this cryptocurrency will have to be patient and wait to see what the ruling is in the end, once all the lawsuit and investigation issues are complete.
The Lawsuit May Take a While
Most people will probably stay away from Ripple for the foreseeable future, simply because the lawsuit isn’t going away quickly. The company has already stated that it disagrees with the SEC’s opinion and will fight the issue in court. Conceivably, that could take years to complete. It’s unlikely that any suspension of XRP will be lifted while the lawsuit is still ongoing, so the answer to the question of when the suspension will be lifted isn’t one that can really be answered.
It could be days or weeks if XRP changes its mind and decides to settle. It could also be years if the fight goes to the courts. There may be appeals of the original decision, too, and that could drag the process out even longer. There’s no easy way to determine what will happen with Ripple, and the price of it has already dropped over 50% simply because people who see problems with an investment generally want out of it before it becomes worse. Those who would have been buyers and traders for Ripple also can’t be, now, so they’re holding off or working with a different cryptocurrency option.
What Did the Company Allegedly Do Wrong?
The SEC says that Ripple is a security, and if that’s true then the company needs to file as such, pay the right types of fees and taxes, and be subject to the proper kinds of restrictions. But Ripple argues that’s not the case, and it isn’t a security. Because of that, the company is fighting back against what the SEC is trying to get it to do. Ripple has also made more than $1.3 billion in profit during its time in the world, and that’s not sitting well with the SEC. For anyone looking to buy XRP, only time will tell how this will play out, but for now, there’s no reason for any buyers, sellers, or traders of bitcoin to expect Ripple to return to “normal” anytime soon.
For traders who want to get away from Ripple, there are many other options. Some traders will do this, but then also follow the court case to see how it looks like it’s going. If Ripple is successful in its defense, it could easily return to exchanges. Traders who were closely following its events would be ready for that and would be able to start trading again quickly. That could lead to rapidly rising prices, but it’s also possible that investors will take a more cautious approach even if Ripple appears to be vindicated. A long court battle looks to be in the company’s future.
There’s no reason to avoid trading other cryptocurrency options, though. Ripple is the only one facing this problem, and it’s not spilling over to other companies. Because of that, traders can buy and sell with confidence on other currencies, so they can continue to grow their portfolios and plan for the future.