The leading American crypto exchange has explained why it chose to support XRP during a time when many other US-based exchanges had decided to distance themselves from the cryptocurrency.
In an interview recently shared on the X platform, Uphold CEO Simon McLoughlin fielded questions about the company’s longstanding dedication to XRP.
When @UpholdInc’s CEO Simon McLoughlin says the SEC was criticized for hurting investors because the exchanges delisted XRP and the SEC responded “we didn’t tell the exchanges to delist” and it gave Uphold great comfort, do you know what Simon is talking about specifically? https://t.co/4EQ7j55atO
— John E Deaton (@JohnEDeaton1) November 3, 2023
Why Uphold Never Scared to Support XRP
Host Ray Fuentes inquired why Uphold remained unflinching in its decision to continue offering XRP trading on its platform even though virtually all other U.S.-based exchanges had withdrawn support for XRP due to regulatory pressures affecting the token.
According to Uphold’s executive, the decision was based on calculated assessments of the situation and expert legal counsel. McLoughlin first narrated the event that led to his involvement with Uphold, where he had closely worked with Mike Zupon, a former head of the SEC’s office.
Therefore, when the SEC initiated action against Ripple in December 2020, Uphold sought Zupon’s expertise. Zupon advised Uphold that although the SEC had filed a complaint, it had not yet been legally adjudicated. As a result, Uphold believed it was the right course of action to maintain support for XRP until the courts had made a legal determination.
In other words, the decision was rooted in Uphold’s belief that, as a matter of U.S. law, XRP was not classified as a security. Subsequently, Uphold got more robust backing for its decision to support XRP from the SEC itself.
In particular, McLoughlin recounted that the SEC received criticism for the harm caused to U.S. consumers due to the delisting of XRP by multiple exchanges. McLoughlin noted that the SEC clarified it had never requested exchanges to delist XRP.
This proclamation from the SEC further affirmed Uphold’s position and gave the platform a sense of confidence in XRP support.
Uphold XRP Support
Uphold’s support for XRP has remained unflinching over the years. This action has made the exchange an XRP powerhouse, as XRP accounts for more than 60% of its reserve. In perspective, the XRP tokens Uphold holds for customers is at least 740% more than the exchange’s Bitcoin holding.
It is worth mentioning that Uphold is currently running an XRP promotion, where it has pledged to give one lucky trader 50,000 XRP.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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