Galaxy Digital halts support for Ripple token amid SEC lawsuit

Galaxy Digital, Mike Novogratz’s cryptocurrency bank, halted trading of the XRP token after the U.S. Securities and Exchange Commission filed a lawsuit against Ripple, according to The Block.

“We do not trade, but we continue to assess the situation as facts come in,” a company representative said.

Additionally, according to the report, Jump Trading, a Chicago-based firm that engages in high-frequency trading of digital assets and provides liquidity to exchanges, has also ceased dealing with XRP.

Commenting on the development, a Ripple spokesperson said it is “the end of an era.” According to him, without proper liquidity provisioning on XRP markets, spreads will widen, and investors will find it harder to operate large positions.

Earlier, Bitwise Asset Management excluded XRP from its flagship index fund Bitwise 10 Crypto Index Fund.

The SEC claims that Ripple sold unregistered securities in the form of XRP tokens to retail investors over seven years, raising $1.3 billion in that period.

CEO Brad Garlinghouse called the regulator’s actions “a horrific precedent for the entire industry”.

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