The aftermath of the crackdown on Coinbase and Binance exchanges by the United States Securities and Exchange Commission (SEC) is now spreading wider than anticipated. One of the latest impacts is the decision by crypto-friendly social trading platform eToro to restrict support for some of the tokens already tagged as securities by the SEC for its U.S. customers, but with an exemption for XRP, among other tokens.
According to eToro, Algorand (ALGO), Dash, Decentraland (MANA) and Polygon (MATIC) will be delisted for its U.S. customers in compliance with a new regulatory shift by the SEC. July 12 is set as the date for its U.S. customers to lose their access to adding more positions to each of these affected tokens.
XRP remains one of the most distressed digital currencies as it was also indicted by the SEC as an investment contract when the market regulator sued the coin's affiliated payments partner, Ripple Labs Inc, back in December 2020.
At the time, many trading platforms, including Coinbase, delisted XRP. But over the past few months, the cryptocurrency has regained its place among top trading platforms like eToro. Though the lawsuit between SEC and Ripple persists, XRP is largely unaffected by the current crackdown that the market regulator is currently wielding.
Potential positive push for XRP
eToro is one of the most prominent brokerage firms serving investors around the world. That the platform will drop support for ALGO and MANA, among other tokens, for US investors, may have many negative undertones that will no longer be a concern for XRP and its community.
The key developers behind the digital currency have been doing all they can to reshape the sentiment of the token in a bid to position it for life after the long-awaited summary judgment is passed.
At the time of writing, XRP is changing hands at a price of $0.5302, up by 3.14% over the past 24 hours amid a raft of positive sentiment.
Tomiwabold Olajide
Gamza Khanzadaev
Vladislav Sopov