Friday, January 01, 2021


INDIAN FORDISM

Ford Motor pulls the plug on plans to cede India business to Mahindra

Ford took a $799 million impairment charge in 2019 in anticipation of the asset transfer to Mahindra to account for what it called fair value less cost to sell

Topics
Ford Motor | Mahindra & Mahindra | Automobile makers


Chester Dawson | Bloomberg Last Updated at January 1, 2021 


James Farley, CEO, Ford Motor


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Ford Motor Co. is reversing plans to cede most of its Indian operations to Mahindra & Mahindra Ltd., deciding to pull out of a proposed joint venture and continue its standalone business in the country.

The companies agreed to terminate the venture after reassessing in part due to the global coronavirus pandemic, they said Thursday. The decision ends a deal reached more than a year ago under which Ford was expected to fold its local operations, including two factories, into a JV that would be majority-controlled by Mahindra, a leading Indian manufacturer of sport utility vehicles.

The future of Ford’s business in India is unclear as it has struggled for more than two decades to grow in the world’s fourth-largest auto market. “The company is actively evaluating its businesses around the world, including in India,” Ford said a statement.

The U.S. carmaker took a $799 million impairment charge in 2019 in anticipation of the asset transfer to Mahindra to account for what it called “fair value less cost to sell.” A spokesman said Thursday the termination of the deal won’t affect that valuation.

“There will be no impact on the impairment that we recorded previously,” said T.R. Reid, the spokesman.

The automakers had said they would cooperate to develop an electric car for emerging markets and work together to introduce three new models to be sold under the Ford brand in India, starting with a midsize SUV.

Ford didn’t specify what would become of those projects. Mahindra said in its own statement the venture’s termination wouldn’t affect its product plans. “Mahindra is accelerating its efforts to establish leadership in electric SUVs,” it said.

The decision came as a Dec. 31 deadline loomed for formalizing the planned partnership. Jim Farley, who became the U.S. automaker’s chief executive officer in October, said in 2019 that the JV with Mahindra could allow Ford to double its revenue from India

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Indian IT firms to take a hit as Trump extend H-1B visa, green card freeze
The freeze on various categories of work visas was ordered by Trump through two proclamations on April 22 and June 22 last year.
Lalit K Jha | Washington Last Updated at January 1, 2021 


US President Donald Trump has extended the freeze on the most sought-after H-1B visas by Indian IT professionals, along with other types of foreign work visas and green cards through March 31 to protect American workers, saying that the reasons for which he had imposed such restrictions amidst the pandemic have not changed.

The freeze on various categories of work visas was ordered by Trump through two proclamations on April 22 and June 22 last year. Hours before the freeze was set to expire on December 31, Trump issued another proclamation on Thursday to extend it until March 31, ensuring that his sweeping limits on legal immigration will remain in place when President-elect Joe Biden is sworn in on January 20.

He said that the reasons for which he had issued such a restriction have not changed. The continuation of the restrictions, which comes with just 20 days left in the Republican President’s term, is the latest effort to bar the entry of immigrants to the US.

Restricting immigration has been a focus of the Trump administration since its first days when it issued the travel ban on seven Muslim-majority countries, and it has continued into Trump’s final year in office as the White House uses the coronavirus pandemic as cover.




Biden, a Democrat, has promised to lift the suspension on H-1B visas, saying Trump’s immigration policies are cruel.

US media commented that Trump’s decision was yet another example of how his administration is trying to box Biden in on challenging policy matters.

The H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in specialty occupations that require theoretical or technical expertise. The technology companies depend on it to hire tens of thousands of employees each year from countries like India and China. They would now have to wait at least till the end of March before approaching the US diplomatic missions to get stamping. It would also impact a large number of Indian IT professionals who are seeking renewal of their H-1B visas.

President Trump said the effects of Covid-19 on the US labour market and the health of American communities are a matter of ongoing national concern, and the considerations present in the two previous proclamations have not been eliminated.

“The 2019 Novel Coronavirus continues to significantly disrupt Americans' livelihoods. While the November overall unemployment rate in the US of 6.7 per cent reflects a marked decline from its April high, there were still 9,834,000 fewer seasonally adjusted nonfarm jobs in November than in February of 2020,” Trump said in his proclamation.

The current number of new daily cases worldwide reported by the WHO, for example, is higher than the comparable number present during June, and while therapeutics and vaccines are recently available for an increasing number of Americans, their effect on the labour market and community health has not yet been fully realised, he said. “Moreover, actions such as States’ continued imposition of restrictions on businesses still affect the number of workers that can be hired as compared with February of 2020,” Trump said, adding that his latest proclamation may be extended if needed.


Trump extends freeze on H-1B visas until Mar 31; 
IT professionals miffed

Donald Trump has extended the freeze on the most sought-after H-1B visas along with other types of foreign work visas by three months to protect American workers

Press Trust of India | Washington Last Updated at January 1, 2021 

US President Donald Trump has extended the freeze on the most sought-after H-1B visas along with other types of foreign work visas by three months to protect American workers, saying while therapeutics and COVID-19 vaccines are recently available, their effect on the labour market and community health has not yet been fully realised.

The decision will impact a large number of Indian IT professionals and several American and Indian companies who were issued H-1B visas by the US government for the fiscal year 2021 beginning October 1.

The freeze on various categories of work visas was ordered by Trump through two proclamations on April 22 and June 22 last year.

Hours before the freeze was set to expire on December 31, Trump issued another proclamation on Thursday to extend it until March 30.

He said that the reasons for which he had issued such a restriction has not changed.

The H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in specialty occupations that require theoretical or technical expertise. The technology companies depend on it to hire tens of thousands of employees each year from countries like India and China.

They would now have to wait at least till the end of March before approaching the US diplomatic missions to get stamping. It would also impact a large number of Indian IT professionals who are seeking renewal of their H-1B visas.

President Trump said that the effects of COVID-19 on the US labour market and the health of American communities is a matter of ongoing national concern, and the considerations present in the two previous proclamations have not been eliminated.

The 2019 Novel Coronavirus (COVID-19) continues to significantly disrupt Americans' livelihoods. While the November overall unemployment rate in the United States of 6.7 per cent reflects a marked decline from its April high, there were still 9,834,000 fewer seasonally adjusted nonfarm jobs in November than in February of 2020, Trump said in his proclamation.

The current number of new daily cases worldwide reported by the World Health Organization (WHO), for example, is higher than the comparable number present during June, and while therapeutics and vaccines are recently available for an increasing number of Americans, their effect on the labour market and community health has not yet been fully realised, he said.

Moreover, actions such as States' continued imposition of restrictions on businesses still affect the number of workers that can be hired as compared with February of 2020, Trump said, adding that his latest proclamation may be extended if necessary.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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INDIAN PRESS
Trump extends restrictions on immigrant and work visas till March

Around 25.7 million Americans are currently unemployed

Web Desk January 01, 2021

Hours before restrictions on immigrant and work visas were about to expire on December 31, US President Donald Trump extended the restrictions till March 31. The restrictions were issued in April and June 2020.

President-elect Joe Biden had criticised the restrictions, while several businesses opposed restrictions that would affect certain foreign workers. The extension, Trump was necessary to ease the slump the economy faced after the coronavirus pandemic hit. According to the Economic Policy Institute, 25.7 million workers in the US are officially unemployed, having lost their jobs due to the pandemic, faced a pay cut or experienced reduction in works hours.

"The 2019 Novel Coronavirus (COVID-19) continues to significantly disrupt Americans'' livelihoods. While the November overall unemployment rate in the United States of 6.7 per cent reflects a marked decline from its April high, there were still 9,834,000 fewer seasonally adjusted non-farm jobs in November than in February of 2020," Trump said in his proclamation.

The current number of new daily cases worldwide reported by the World Health Organisation, for example, is higher than the comparable number present during June, and while therapeutics and vaccines are recently available for an increasing number of Americans, their effect on the labour market and community health has not yet been fully realised, he said. “Moreover, actions such as States'' continued imposition of restrictions on businesses still affect the number of workers that can be hired as compared with February of 2020,” Trump said, adding that his latest proclamation may be extended if necessary.

In October, a federal judge in California blocked Trump's ban on foreign guest workers as the judge found the ban would cause "irreparable harm" to the businesses by interfering with their operations and cause them to lay off employees and close open positions.

-with PTI inputs


Trump extends immigrant and work visa limits into Biden presidency
by Staff reporter
ZIMBABWE



President Trump on Thursday extended a pandemic-era suspension of certain immigrant and work visas, ensuring that his sweeping limits on legal immigration will remain in place when Joe Biden is sworn in.

Through a proclamation issued 20 days before Inauguration Day, Mr. Trump ordered a three-month extension of the visa restrictions, which were first enacted in April as a ban on some prospective immigrants and expanded in June to also halt several temporary work programs.

Mr. Trump has said the limits - which invoke a broad presidential power to bar the entry of foreigners deemed to be 'detrimental to the interests' of the U.S. - are necessary to prevent new immigrants and temporary workers from competing with Americans for jobs during the economic recession caused by the coronavirus pandemic.

"The effects of COVID-19 on the United States labor market and on the health of American communities is a matter of ongoing national concern," Mr. Trump wrote in Thursday's proclamation, which cited the unemployment rate, pandemic-related restrictions on businesses issued by states and the rise in coronavirus infections since June.

While he has pledged to overturn some of the centerpieces of Mr. Trump's immigration agenda, Mr. Biden has yet to say whether he intends to rescind the visa restrictions. A representative for Mr. Biden's transition team did not immediately respond to a request for comment.

Mr. Trump's proclamation prohibits the issuance of certain immigrant visas to people abroad who seek to move to the U.S. permanently through green card petitions filed by their U.S. family members or prospective employers.

Spouses and underage children of U.S. citizens are not subject to the restrictions, which also exempt some healthcare workers who intend to combat the coronavirus and immigrant investors who agree to invest more than $1 million in the U.S.

Mr. Trump's order also continues the suspension of the diversity visa lottery, a program he has frequently criticized that allows people from underrepresented countries, most of them in Africa, to move to the U.S. In September, a federal judge in Washington, D.C. ordered the government to issue visas to more than 9,000 would-be immigrants who won the lottery in 2020, but they remain barred from entering the U.S. under the proclamation.

The restrictions also halt several temporary visas used by people abroad to work in the U.S., including the H-1B program that is popular in the tech sector and H-2B visas for non-agricultural seasonal workers. Cultural exchange J-1 visas for au pairs and other short-term workers; visas for spouses of H-1B and H-2B holders; and L visas for companies to relocate employees to the U.S. will continue to be suspended as well.

In early October, San Francisco-based U.S. District Judge Jeffrey White barred the Trump administration from applying the temporary work visa restrictions to foreign workers hired by several major U.S. companies.

Source - CBS News

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PRO TRUMP RUSSIAN STATE PROPAGANDA


'Stop The Steal': Trump Announces 'BIG' Protest Rally in Washington DC on 6 January

US
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Sitting president Donald Trump has refused to concede to Joe Biden, who, according to the popular and Electoral College vote, has won the 2020 White House race. Trump continues to challenge the election outcome in courts and claims "massive election fraud".

President Donald Trump took to Twitter on Friday to announce a big "Stop the Steal" protest rally in Washington, DC on 6 January - the day when the joint session in the US Congress will take place to certify the presidential election results.

DETAILS TO FOLLOW

'StopTheSteal': Trump Announces 'BIG' Protest Rally in Washington DC on 6 January - Sputnik International (sputniknews.com)

COMMON CAUSE BETWEEN WHITE NATIONALIST CHRISTIANS 




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Coronavirus pandemic could be twice as bad for global economy as WORLD WAR

Production disruptions caused by the Covid-19 outbreak could cost the global economy twice as much as a hypothetical global military conflict, according to figures cited in a recent research by the McKinsey Global Institute.

In a report headlined ‘Risk, resilience, and rebalancing in global value chains’, the analysts of US-based consulting firm McKinsey evaluated various risks of a manufacturing shutdown lasting 100 days. The economic shocks considered in the report stem from a wide range of possible events – from a cyberattack and trade rows to military conflicts and a pandemic – and vary in frequency, lead time, and nature of impact.

It turns out that damages from a hypothetical world war scenario could amount to around $15 trillion, while the coronavirus pandemic would cost as much as two such conflicts and leave a hole of around $30 trillion in the global economy. This is three times more than the cost of the Great Recession, which is estimated at $10 trillion, and 30 times as much as the fallout from a large-scale cyberattack.

RT
© McKinsey Global Institute

According to the McKinsey analysis, based on a model informed by the financials of 325 companies across 13 industries, value chain disruptions can easily wipe out more than 40 percent of a year’s profits every decade on average. However, a single severe event that disrupts production for 100 days could erase almost a year’s earnings in some industries. 

Labor-intensive value chains are most exposed to pandemics, the report says. As for industries, the pandemic has the worst impact for apparel, which accounts for the largest share of employment, providing at least 25 million jobs globally, followed by aerospace, furniture and petroleum products, among others. 

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Say goodbye to globalization as
 ‘The Age of Disorder’ is coming
– Deutsche Bank

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© Getty Images / Ig0rZh

The four-decade era of globalization may be coming to an end, and we could be entering “The Age of Disorder,” which will reshape both economies and politics, Deutsche Bank analysts have said in a new research note.

One of the key characteristics of the new era will be the reversal of unfettered globalization, a team of analysts led by strategist Jim Reid predicted. While we saw “the best combined asset price growth of any era in history, with equity and bond returns very strong across the board” since 1980, “the Age of Disorder” is likely to break this trend.

Deteriorating US-China relations is another theme (out of eight) that will define the next distinct era of modern times, “which is hastened, but not caused by, the pandemic.” The analysts note that the Chinese economy will be closing the gap with the US and could finally outperform it by the end of the 
decade.

“A clash of cultures and interests therefore beckons, especially as China grows closer to being the largest economy in the world,” the report says.

Fortunately, this economic standoff is unlikely to trigger a real military conflict between the two states, as usually happens when a rising power tries to challenge the ruling one. Economic war – with tariffs, sanctions, and attacks in the technology sphere – will go on instead, the analysts believe. No matter who wins the 2020 presidential election in the US, the rift between the two superpowers will grow.

Global economy won’t return to pre-pandemic levels ‘for a long time’ – Deutsche Bank

While the coronavirus crisis has already put the European economy at a crossroads, Deutsche Bank says that the next decade may become “a make-or-break decade for Europe.” Among other factors defining the future are higher debt and helicopter money (distributing cash to the public) becoming mainstream – policies which are likely to spike inflation.

Inequality may even get worse in the post-Covid-19 world, before a backlash and reversal takes place, the bank says. Inequality is closely connected with the intergenerational gap, but the analysts expect that the number of younger voters will exceed those born before 1980 by the end of the decade. This could lead to major policy changes in many spheres – from taxes to climate.

“Such a shift in the balance of power could include a harsher inheritance tax regime, less income protection for pensioners, more property taxes, along with greater income and corporates taxes... and all-round more redistributive policies,” the Deutsche Bank report said.

Finally, the next 10 years will show whether the exponential rise of the value of tech companies was worth it. The bank says that they will either start a technology revolution or prove to be the second dot-com bubble.


10 Sep, 2020 
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China to overtake US as world's largest consumer market 'very soon'

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FILE PHOTO: A street outside of a shopping mall complex in Beijing, China 
© AFP / Nicolas Asfouri

China's consumer goods market is rapidly catching up with the US and is poised to become the world's largest in the near future, according to a top Chinese economic planning agency official.

"China's retail sales for the first time surpassed 40 trillion yuan in 2019, an increase of more than 42 percent from 2015. It will overtake the United States to become the top consumer goods market very soon," deputy chief of the National Development and Reform Commission, Lian Weiliang, said at the China Reform Forum, as quoted by Chinese media.

China’s Singles’ Day sales hit record $115 BILLION as economy recovers from Covid-19

He added that the Chinese economy should take advantage of its "super-large market" to build a "high-quality market system in five years."

While the official did not offer any particular timeframe within which the two consumer markets would trade places, state-run Global Times newspaper noted in an article that it could happen this year.

China will be the only major economy to see growth this year as world braces for long recovery from Covid-19 crisis – IMF

The pandemic has crippled retail sales around the globe in the past 12 months, with consumers remaining cautious about their spending amid a crisis that has left millions without jobs. In October, retail sales in both the US and China missed growth expectations, but the latter posted bigger gains. Retail sales grew 4.3 percent in China, while the US saw 0.3 percent growth.

Retail sales were expected to pick up amid big holiday sales in November. This year's Black Friday has already set another record with consumer spending reaching $9 billion. Meanwhile, Cyber Monday is poised to become the biggest online shopping day in US history, with anticipated sales of up to $12.7 billion. However, both events are far behind China's Single's Day, which generated $115 billion on two giant online platforms Alibaba and JD.com.

China was just about $200 billion behind US consumer spending in 2019 before the coronavirus crisis hit, according to Wang Yiming, former deputy director of the Development Research Center of the State Council. He also noted that the predicted shift could occur as early as this year.

Wang warned, however, that domestic consumption in China is still under pressure, while high household debt and a widening income gap could create additional challenges.

With the worst of the coronavirus crisis seemingly over for China, the world's second-largest economy is set to be one of a few to avoid contraction this year. The International Monetary Fund (IMF) expects China's economy to grow 1.9 percent in 2020, while the US economy is set to shrink by 4.3 percent. The US may also see another contraction in the first quarter of 2021, some analysts have warned.

1 Dec, 2020 RT
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Moderna Vaccine Phase III Trial Results Released In New England Journal Of Medicine

Daily Review of Covid-19 Research and Policy
by Doctors on the Frontlines

Friday January 1, 2021

The phase III randomized double-blinded multi-center trial of the Moderna vaccine against SARS-CoV-2 has now been published.The trial enrolled 30,420 volunteers, randomly assigned to receive either two doses of the vaccine 28 days apart or a placebo injection. None of the study subjects who received the vaccine developed severe covid-19 (needing hospitalization). Among volunteers who received the mRNA vaccine, only 11 out of 15,210 developed covid-19, versus 185 out of 15,210 in the placebo group. This means that the vaccine was 94.1 percent effective in preventing covid-19 illness (though we do not know whether infections were prevented). Severe illness was only detected among test subjects in the placebo group, another promising sign. Subjects older than 65 years and those who had evidence of previous coronavirus infection also fared similarly.

Of note, an assessment of outcome 14 days after the first dose indicates early effectiveness. However, we do not yet know whether one dose would provide long-lasting immunity, which means that for now, the two-dose strategy must be continued. Data given to the FDA earlier this month suggested that one dose provided 92 percent efficacy compared to placebo, but only out to 28 days. Much longer follow-up is needed on this aspect in particular.

Side effects have been a closely watched area. Soreness or pain at the injection site was equally frequent in those who received the vaccine and those who received the placebo. Those who received the vaccine were more likely to report fever and generally feeling ill. No severe adverse events were reported in either group.

The Moderna vaccine (mRNA-1273) is a lipid nanoparticle that contains mRNA that encodes the virus's spike protein. The Moderna and Pfizer vaccines were developed using a novel strategy, using mRNA instead of a weakened, killed, or gutted virus, which are the usual mechanisms of action for vaccines in use for a variety of other diseases. Both the Moderna and Pfizer vaccines include the genetic code for just one part of SARS-CoV-2, the spike protein. Once injected, the human cells create that single viral protein (but not the 28 other proteins that would be needed for a complete and infectious viral particle) which is then recognized as "unusual" by our own immune systems. That our bodies "know" to turn around and make antibodies to a protein that it just manufactured itself is one of the remarkable achievements of our own immune systems. The rationale is that including part of the virus might limit side effects such as rash, fever without reducing effectiveness. Also, using mRNA instead of DNA eliminates the chance of the viral genetic material being incorporated into a person's own DNA.

These results demonstrate that the Moderna vaccine is safe to administer and effective at preventing covid-19 serious enough to require hospitalization. It cannot assess for adverse events that occur more rarely than in 1 in 15,000 patients nor does the study speak to whether the vaccine reduces other complications such as an increased risk of blood clots in the lungs or persistent neurologic or psychiatric changes. The study did not analyze if there was a difference in vaccine efficacy for different strains of SARS-CoV-2, though experts believe that there is little cause to worry that it would not be effective against new strains such as the B.1.1.7 mutant which has now been detected in the US.


POLICY BRIEFING

Understanding Vaccine Hesitancy As Public Health Experts Consider A Vaccine Mandate. Schools Will Be A Major Battleground

Vaccine hesitancy is already a well-documented and closely studied phenomenon, mostly encountered in the world of pediatrics. But in anticipation of more widespread covid-19 vaccination rollouts and the exploration of a possible vaccine mandate, a discussion of the logistics is now more relevant than ever. Ground zero for the brewing controversies: schools. It is certain that no matter how safe and effective these vaccines turn out to be, some parents will desire exemptions. The deadly American trope of pitting individual autonomy against public health is poised to play out yet again, with higher stakes than ever before.

With multiple SARS-CoV-2 vaccines now available, a recent viewpoint in JAMA explored how adults might respond to a vaccine mandate. Hesitancy already exists for the covid-19 vaccine: 39 percent of Americans intending to wait on getting it, and 15 percent saying they wouldn't take it at all (though that number has fallen steadily from 50 percent last summer). Given the current climate, and the fact that the vaccines are only approved via emergency use authorization, passing a mandate would be difficult. Before that could happen, a full biologics license application approval would have to be obtained through the US Food and Drug Administration. Mandates for emergency use authorized vaccines would have no legal standing.

Requiring a vaccine for millions of Americans who expect protection of their individual liberties is daunting. The JAMA viewpoint explores what a mandate might look like for specific populations, starting with places the mandates already exist—schools. All states require vaccination to enter schools, but medical exemptions are permitted. The troubling aspect for healthcare professionals is that many states allow for religious exemption and a few also allow exemption for philosophical reasons, though rules have tightened in recent years. Predictably, the areas with less stringent policies are where outbreaks of preventable disease occur. Given a national desire to return to in-person classroom learning, it is likely the covid-19 vaccine will eventually be added to the list of required childhood vaccinations. But aside from an FDA approval, more testing in pediatric populations will be needed. Pediatric organizations have been vocal in calling for these trials.

While healthcare workers are required to get the influenza vaccine (or wear a mask for the duration of flu season), given the stresses of the pandemic and the available shots, it may be a while before they are required to get the covid-19 vaccine. Healthcare institutions are working to track vaccine hesitancy within their clinics and hospitals. Currently, many healthcare workers have expressed enthusiasm for the vaccines, heralding vaccination as a necessary step to return to pre-pandemic normalcy and hoping the general public will be reassured by their example.

Businesses are another area of interest, particularly in instances where in-person work, or vulnerability of clients comes into question. Our hope is that exemption policies will be strict.

Immunizations have a long and excellent record of safely saving lives. Vaccine mandates may become a key and necessary tool in restoring life-as-we-once-knew-it. Vaccine hesitancy will need to be overcome by having trusted medical professionals discuss the benefits and address their patients' concerns. While a mandate may be needed, targeted and thoughtful education from within communities would be more helpful in getting the public to accept vaccines as the pandemic-defeating innovations that they may turn out to be.

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HORARY ASTROLOGY FOR CASINO CAPITALI$M

THIS WEEK WATCH TSLA, TSLA & TSLA

We projected at least a 10-15% correction 

ala Facebook’s entry into the S&P

666 PIVOT S 630 S2 550 R1 696

HORARY ASTROLOGY; ASK A QUESTION GET AN ANWSER

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CRIMINAL CRYPTO CAPITALI$M
Binance to delist Ripple’s XRP cryptocurrency due to SEC lawsuit














BY DUNCAN RILEY

Binance, the world’s largest cryptocurrency exchange by volume, today announced that it will delist Ripple Labs Inc.’s XRP cryptocurrency following a lawsuit filed against Ripple by the U.S. Securities and Exchange Commission alleging that the cryptocurrency is an unregistered security.

The announcement comes after Coinbase Inc. announced on Dec. 28 that it was also planning to suspend XRP trading in light of the SEC lawsuit again Ripple.

The SEC filing, which targets both Ripple and two of its executives — Christian Larson, the company’s co-founder and executive chairman of its board and former chief executive officer, and Bradley Garlinghouse, the company’s current CEO — alleges that XRP is an unregistered security.

Specifically, the SEC claims that Ripple raised capital to finance the company’s business beginning in 2013 through the sale of unregistered securities, XRP tokens, to investors in the U.S. and worldwide. The SEC alleges Ripple distributed billions of XRP in exchange for noncash considerations such as labor and market-making services, which is the key to its complaint.

Offering cryptocurrency is not illegal when the purpose is to provide a digital currency for trading, but per the Securities Act of 1933, any offer that involves funds being raised for a company must be registered as a security.

Binance said in a support article that its support for XRP will end on Jan. 13. While support for XRP including trading and deposits will be suspended, Binance users will still be able to withdraw XRP holdings from their Binance wallets.

Ripple continues to deny the allegations strongly. “XRP is a currency and does not have to be registered as an investment contract,” Garlinghouse previously said. “In fact, the Justice Department and the Treasury’s FinCEN already determined that XRP is a virtual currency in 2015 and other G20 regulators have done the same. No other country has classified XRP as a security.”

Coinbase and Binance are not alone in looking to delist XRP. According to Pyments.com, Bittrex and Crypto.com have also announced that they will delist XRP in light of the SEC lawsuit. Bittrex will delist XRP on Jan. 15, while Crypto.com will delist the cryptocurrency on Jan. 19.

Siam Blockchain suggests that XRP may just be the beginning when it comes to the SEC targeting so-called “stable coins” or similar tokens, noting that Tether and USDT may also be targeted soon.

At a time where bitcoin continues to hit record highs, XRP investors have been hit hard. After having traded as high as 68.43 cents in November, XRP was trading at 20.814 cents as of 8:45 p.m. EST.


Coinbase sued by US California federal court for illegal XRP sales

CRYPTOS | Dec 30 2020, 

Following the SEC's lawsuit against Ripple, Coinbase has been sued by the California federal court for illegal XRP sales.

Coinbase has recently applied to conduct an IPO and which could be affected by the lawsuit.

The United States District Court Northern District of California has filed a lawsuit against Coinbase for the violation of the unfair competition law, alleging the exchange was selling XRP which is an unregistered security, and taking commissions from the sales. 

The main idea behind the lawsuit is that Coinbase somehow knew that XRP was not a commodity and falsely represented it as such. However, considering that the SEC has just sued Ripple to clarify this exact question, it's hard to understand how Coinbase would know beforehand. 

Additionally, the complaint states that Coinbase knew about XRP being a security because of his technological integration into XRP's nodes. It also accuses Coinbase of being unfair because selling XRP securities allowed the exchange to gain a competitive advantage over other exchanges that only sold commodities. 

Anderson Kill partner Stephen Palley thinks the lawsuit will most likely fail as he sees a couple of issues with it. Palley stated that it is not a huge risk to Coinbase compared to SEC enforcement.
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