The price of Ripple (XRP), the world’s top three cryptocurrencies, plummets. Therefore, it is on the verge of becoming just a piece of paper. The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against XRP. They call it the same securities as stocks, not currencies.
As of the 24th, the XRP plunged 38 percent from 24 hours ago to $0.27, closer to zero dollars. The XRP has maintained the $0.6 level before the SEC filing.
As XRP rose to $0.7 at the end of last month, it was heading for the highest price of $2.5 in 2018 when the cryptocurrency craze broke out. However SEC filed a complaint on the 21st against two co-founders of Ripple on charges of selling unregistered securities. Since then, the exchange price of XRP continues to plummet.
Ripple XRP and SEC dispute over “securities”
The XRP was created and distributed by Ripple’s founders in 2012 and was designed as a cross-border payment method beyond the US. Ripple co-founders protested that the SEC’s complaint was “fundamentally wrong”. They say that the XRP was not a securities but a currency.
However, the SEC appears to be collecting necessary data for the Ripple complaint. It demands an open answer to how Wall Street securities firms manage their virtual assets. According to Reuters, SEC said in a statement on the 23rd that it also sought advice on how securities firms should regulate when holding and selling virtual financial products.
CNBC explained that the label “Securities” on the XRP means that the ripple business will be subject to strong regulations. Ripple has 55 billion out of 100 billion XRPs issued, which have reduced its holdings every quarter and generated sales.
On the other hand, Bitcoin is showing a stable trend compared to the Ripple crash market. It is not far away from the $23,000 record high.