Please note, we have released an update to the message below. You can read it here.
SEC Action and Industry Response
iTrustCapital and Liquidity Providers
iTrustCapital is a Self-Directed IRA Technology provider. Our company connects institutional-grade custody and liquidity providers into a single 24/7 trading interface. Over the past two years, we have become the premier Crypto IRA brand and are proud to have been warmly welcomed by the XRP community.
We’ve worked closely with industry-leading liquidity providers with hopes of continuing to service the XRP community. We are not an exchange and require liquidity providers to service client trading needs.
Unfortunately, uncertainty around the regulatory status of XRP caused all of our US-based liquidity partners to suspend XRP trading within the coming weeks. As a result, trading of XRP will not be available after Friday, January 8th, 2021, and may cease earlier as required by our liquidity providers.
As with any Self-Directed IRA, the client makes all decisions. Our platform will facilitate one of the following three options:
Convert to another asset. Before January 8th or such earlier date as may be required by our liquidity providers, clients can freely trade XRP on our platform. You can use this as an opportunity to evaluate our offerings and find the best place to park your IRA funds. Our platform supports cryptocurrencies like Bitcoin and Ethereum, but also precious metals like Gold and Silver. You can review our complete list of available assets on our website.
Continue to hold XRP without guaranteed liquidity. Clients who choose not to sell or are unable to sell by January 8th or such earlier date as required by our liquidity providers will still hold XRP within their Self-Directed IRA but will have no ability to trade. Standard monthly charges still apply. No action is required.
Distribution. Subject to applicable limitations imposed by the IRS, Clients may take distributions from their IRAs. We recommend consulting with a tax professional or financial planner before taking this action. To learn more about distributions, please review the IRS FAQ.
Additional Questions and Answers
Is there a chance you may stop XRP trading earlier?
Our platform will not support liquidity if our partners decide to shut down trading earlier. We currently anticipate trading to continue on our platform through January 8th, and we will do our best to notify clients of any changes to that timing.
Will I be able to buy or sell after Jan 8th?
No, we will no longer be facilitating trading of any kind as of January 8th. This includes both buying and selling.
Will iTrust continue to track and display XRP’s performance in the same manner as has been done to date – even though I can’t trade it?
We will do our best to allow clients to continue to track their XRP holdings. The only change you should expect is that the asset can no longer be bought or sold.
Can I withdraw my XRP since I cannot trade it?
Yes, but this will require a distribution. We recommend consulting with a tax professional or financial planner before taking this action. To learn more about distributions, please review the IRS FAQ.
Can I transfer my XRP to another provider?
An IRA Transfer is only possible from Crypto IRA provider to Crypto IRA provider, to our knowledge all Crypto IRA providers are planning on halting trading of XRP. If you do find another Crypto IRA provider that is willing to accept an In-Kind Transfer, please contact us.
What about my Flare tokens?
If you previously qualified for the Spark (Flare) token distribution event based on the snapshots, no action is needed. If you did qualify based on the snapshots, and now choose to sell your XRP before January 8th, you are still qualified to receive Spark (Flare) distribution.
Will you turn XRP trading back on?
Our goal is to provide the best client experience while also ensuring compliance with all IRS and SEC regulations. If exchanges restart XRP trading with United States based clientele, iTrustCapital will swiftly integrate them to our platform.
If XRP is deemed a security, will you turn trading back on?
If XRP is deemed a security by the SEC, it is unlikely we would be able to facilitate trading on our platform.
Important Note: All investments involve substantial risk of loss. All trading strategies are used at your own risk and you are responsible for the financial resources you utilize. If the market moves against you, you may sustain a total loss of the initial amount you allocated to the investment. you should not engage in trading unless you fully understand the nature of the transaction you are entering into and the extent of your exposure to loss. If you do not fully understand these risks, you should seek independent advice from your financial advisor. iTrust is not an investment specialist, tax specialist, financial planner (certified or otherwise), or retirement advisor, and iTrust does not provide investment advice, tax advice, financial planning services, or retirement planning or retirement-specific advice. iTrust facilitates the purchase of digital currency and precious metals, nothing more, and charges a fee for the service it provides. All investment decisions are made by iTrust users. Please read the full Risk Disclosure.