Because Ripple faces serious legal fees due to the associated token XRPmany crypto platforms have decided to drop support for the coin until things are resolved.
However, GateHub, a UK-based cryptocurrency gateway service, has decided to continue offering XRP.
According to a January 12 Announcement, GateHub will not drop XRP unless a decision by the US Securities and Exchange Commission makes it necessary:
Please note that GateHub Ltd. will continue to list XRP until the SEC’s complaint against Ripple is reviewed and a final decision is made that XRP is properly classified as a ‘security’, or until we receive a discontinuation of the notice from the SEC . “
GateHub said the decision to keep XRP on its platform follows a careful review of it SEC’s complaint against Ripple, which alleged that the company sold XRP as a security without a license. GateHub expressed optimism about the future of XRP, claiming that the company is confident that XRP is not a security:
“We have never believed that XRP is a ‘security’ under the prevailing ‘Howey’ test in the US, and see XRP primarily as a ‘utility’ token whose value is based on its use in payments and foreign exchange. Nor have we personally witnessed inappropriate market behavior by Ripple Labs or its senior officials. “
The company further said Ripple should be subject to appropriate enforcement action if US authorities prove that Ripple and related executives have defrauded investors. But that’s far from a move by the SEC classifying XRP as a security, GateHub said, stressing that this move has potentially catastrophic consequences for investors who haven’t done anything wrong.
GateHub’s decision to keep XRP on its platform is a new turn in a chain of events in the wake of the SEC filing a $ 1.3 billion lawsuit against Ripple on December 22, 2020. A. number of major crypto companies including Coinbase, Binance.US and OKCoin then removed XRP while some companies like Uphold and now GateHub decided to keep XRP until the lawsuit is resolved.
As Cointelegraph previously reported, Binance.US is preparing to drop XRP today. On January 11, the CEO of Bakkt, one of the largest US-based cryptocurrency companies, said the company will not list XRP as part of further product development.