The US Securities and Exchange Commission (SEC) accused Ripple Labs of the previous week, forming a lawsuit against the firm. The pressure from the strong financial organ has caused the drop of Ripple’s cryptocurrency XRP, and this fall continues. Login Casino follows the latest cryptocurrency news, now explaining the case in more detail.
While the world was attentively looking at the new record highs that Bitcoin was taking last weeks, the fourth most capitalized cryptocurrency, XRP, was out of trend. The Securities and Exchange Commission registered a lawsuit against XRP’s founding firm, Ripple Labs, accusing the latter of the cheating tactics they used to promote the digital assets. One of the primary hooks to forbid XRP is its wrong status, which should be changed from ‘currency’ to ‘securities,’ according to the SEC.
How is the situation developing now?
As the US upper financial regulator automatically leads to problems, worldwide exchanges started to delist XRP from their platforms. Some of them just froze transactions related to XRP for the upcoming weeks.
The decrease in liquidity led to the price drop, which was even lower than 0.18 cents per token this week. The regarded currency was about 0.35 cents per coin seven days ago, with the highest monthly result at the level of $0.65 per one XRP.
Even though the lawsuit by the SEC is a serious problem, there are plenty of reasons to protect the authority of Ripple and XRP. Thus, the currency has been on the market for eight years and has already been included in the registers of other American financial structures like FinCen and Treasury Department.
This case will obviously attract a lot of attention from the side of the digital currency world as the reputation of the fourth most capitalized token is doubted. Satisfying the SEC’s claim can cause trouble to other cryptocurrencies, although it looks quite impossible in the recent conditions.