In the past 24 hours, Ripple’s XRP has fueled nearly 18%, breaking key support levels. Currently it is at $ 0.45 with a market cap of $ 20.90. With this, XRP also reduces its weekly losses to over 7%. The cryptocurrency has now corrected nearly 30% from its weekly high of $ 0.65.
The latest drop in prices was due to Monday’s market-wide correction, but has worsened on news from the US Securities and Exchange Commission that it was suing Ripple for securities violations. Brad Garlinghouse, CEO of Ripple, told The Fortune that the regulator was ready to bring a lawsuit over alleged allegations of selling XRP as unregistered securities.
The lawsuit will likely include names of Ripple co-founders – Brad Garlinghouse and Chris Larsen. As part of the alleged lawsuit, regulators could urge Ripple to register XRP as a security, just like stocks in a stock, rather than having the status of a stream. Note, however, that XRP is different from Bitcoin (BTC) and Ethereum (ETH), which are shaped by an ongoing process called mining.
Ripple CEO strikes at the SEC
Brad Garlinghouse can come forward to defend his company again. In his successive tweets today, the Ripple CEO said:
“Ripple has and will continue to use XRP as it is the best digital asset for payments – speed, cost, scalability and energy efficiency. It is traded on over 200 exchanges around the world and will continue to flourish.
The SEC – not in line with other G20 countries and the rest of the US government – shouldn’t be able to figure out what innovation looks like (especially if its decision directly benefits China). Make no mistake, we are ready to fight and win – this fight is just beginning. “
Ripple, Japan-based partner SBI Holdings has supported the blockchain startup and stated that the Japanese regulatory authority has already given XRP “currency” status. Yoshitaka Kitao, President of SBI Holdings, said:
The Japanese FSA has already made it clear that XRP is not a security. I am optimistic that Ripple will prevail in the final decision in the US. SBI Holdings remains a permanent partner of Ripple and is looking forward to a joint expansion in Asia. https://t.co/MFRxLLAZdG
– Yoshitaka Kitao (@yoshitaka_kitao) December 22, 2020
Interestingly, these developments come at a time when the not-so-crypto-friendly SEC chairman Jay Clayton is due to step down in a matter of days. It also comes before the Joe Biden administration is supposed to take command. In the past, Ripple has been critical of the SEC for hindering innovation in the crypto space. The company had also shown a willingness to move from the US to other crypto-friendly countries.
Surprisingly, in a newly published document, Ripple mentions Bitcoin (BTC) and Ethereum (ETH) as “controlled by the Chinese”. The co-founder of Ethereum, Vitalik Buterin, berated the company furiously.
It looks like the Ripple / XRP team is sinking to new levels of strangeness. They claim that for * public order * reasons their shit shouldn’t be labeled security because Bitcoin and Ethereum are “controlled by China”. ???????? https: //t.co/ts02JqrTrB pic.twitter.com/mKwEzGIetk
– vitalik.eth (@VitalikButerin) December 22, 2020
Ultimately, Binance CEO Changpeng Zhao stepped in with a message of peace.
Let’s be decentralized, but not divided. Let’s help each other grow the industry. #BTC, #ETH, #XRP, #BNB https://t.co/2jQZ48a12x
– CZ Binance (@cz_binance) December 22, 2020
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About the author
Bhushan is a FinTech enthusiast and has a keen understanding of the financial markets. His interest in economics and finance draws his attention to the emerging markets for blockchain technology and cryptocurrency. He is constantly in a learning process and keeps himself motivated by sharing what he has learned. In his spare time, he reads thriller novels and sometimes explores his culinary skills.