wXRP is a derivative product that is pegged to the digital asset that the SEC claims to be a security in what has been dubbed “the cryptocurrency lawsuit of the century”.
As is widely known among XRP investors and the crypto trading industry, US-based digital asset exchanges have delisted XRP to avoid being targeted by the Securities and Exchange Commission as the agency entered a court battle against Ripple.
Crypto trading platforms kept that decision even despite the “bombshells” by Judge Netburn described by attorney Jeremy Hogan last year, including when she questioned whether
“everyone who sold XRP – including you and me – are selling illegal securities”, to which the SEC attorney Jorge Tenreiro replied by saying that, under Section 4 of the Securities Act,
only Ripple and its affiliates (meaning employees, Hogan said) could be accused of illegal sales. According to that argument, exchanges could resume the trading of XRP.
XRP DELISTED IN THE UNITED STATES
Park Bramhall, senior counsel at Lowenstein Sandler LLP, had a different perspective:
“The fact that the SEC has apparently stated that parties other than Ripple and its affiliates can resell XRP under Section 4 of the Securities Act doesn’t mean that exchanges are free to relist XRP,” he told Coindesk at the time.
“What the SEC appears to be saying here is that, in its view, parties other than Ripple and its affiliates can rely on the exemption from registration provided under Section 4(a)(1) of the Securities Act for resales of XRP, and that exemption is only relevant if XRP is deemed to be a security.”
The truth of the matter is that XRP will likely remain delisted in the United States while the Ripple lawsuit lingers, but there might be a way in for US investors who look to trade the news stemming from the court battle in New York.