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October 4, 2022
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Kraken CEO says XRP poses “huge” risk for exchanges

According to Jesse Powell, maintaining XRP on exchanges is risky because of the issue surrounding the SEC

Jesse Powell, the CEO of cryptocurrency exchange Kraken, addressed criticism surrounding the suspension of XRP trading, claiming that the token poses a “huge asymmetric risk” to exchanges after affiliate blockchain company Ripple was sued by the Commission on US Securities (SEC) at the end of December.

Powell says that judges tend to side with regulatory agencies:

“We must assume that the SEC’s case is in good faith. Judges tend to side with the agencies. If XRP is considered a security, the SEC would say that exchanges should know. ”

In the past few months, almost all of the major American exchanges, including Coinbase and Binance U.S., have interrupted or withdrawn XRP trading.

Kraken – whose valuation is said to be close to $ 20 billion – also suspended XRP trading in mid-January.

However, the token is still available on many major exchanges for trading outside the U.S.

Image from messari.io

The court has the final say

UK-based asset manager Tetragon was unable to redeem its stake in Ripple after its injunction was denied by a Delaware Chancellery Court judge earlier this week.

In addition, the SEC mentioned that it is up to the court to determine whether or not the XRP is title in its recent motion to reject the holders’ petition.

However, as reported by U.Today, the agency also emphasized that exchanges are unlikely to “turn the tide” if they change the process.

In addition, petitioners cannot demonstrate that digital asset trading platforms will reverse their course, or that the value of XRP will increase if the Commission changes its complaint to exclude “the petitioners’ XRP” at the same time proceeds with the case against Ripple.

Source: U.Today

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