Binance will end margin support for XRP and TrueUSD (TUSD) starting May 28, 2024 and automatically convert these assets to USDT. Although this decision was made amid litigation between Ripple and the SEC, XRP price has shown a slight recovery. Ripple recently asked the court to seal documents to protect its confidential information in the lawsuit.
The decision was announced by cryptocurrency exchange Binance stating that its futures trading arm Binance Futures will end support of XRP and TUSD as collateral effective May 28, 2024. In In this mode, the transfer limit for XRP and TUSD is set to 0 and all remaining XRP and TUSD balances in the USDS-M Futures wallet after May 28 will be automatically converted to Tehter (USDT).
While Binance advises users to avoid opening new futures positions during the transition period, they state that they will not be responsible for any losses resulting from new positions opened during this transition. Users are also warned that the conversion may be reflected in their transaction history and they should be careful about any disruptions that may occur during the process.
Despite this announcement, XRP price has recovered slightly. Following Binance's announcement, XRP price increased 0.51% to $0.5059 and trading volume increased 4.46% to $815.87 million. This price action suggests that the market may have initially reacted negatively, but the automatic conversion to USDT has helped mitigate potential disruption by aligning Binance's operations with market dynamics. growing school.
This decision comes amid a legal battle between Ripple and the SEC. The recent Ripple v. SEC case took a new turn on May 13, with the filing of a consolidated mail motion to seal key details. Ripple Chief Financial Officer Jonathan Bilich emphasized that the documents need to be sealed to protect confidential information. This development highlights the critical need to protect Ripple's internal information from public disclosure.
