On Dec. 29, Ripple issued a statement asking everyone in the crypto market to hear its explanation on the recent backlash with the U.S. SEC. On Dec. 22, SEC filed a lawsuit against Ripple alleging that XRP is a security subject to the registration requirements of the federal securities laws.
More than a week after the filing, the XRP price took a sharp dive. On the day of filing, the XRP price is at $0.446. As of writing, its price has already dropped by 124% with its current price at $0.199.
XRP price has suffered a major blow after being delisted from trading on major exchanges like Coinbase and OKCoin. Crypto.com, Ziglu, and Bittrex have also followed suit after taking similar action against XRP. Crypto payment Wirex will no longer include XRP in its U.S. app version while Swipe wallet will delist XRP for U.S. customers. Delisting and suspension from these companies will take effect during the early part of January 2021.
Bitwise Asset Management, a leading crypto fund manager, has liquidated all its XRP holdings shortly after SEC’s filing. In a statement, it has stated that it does not invest in assets that are deemed securities under federal or state securities laws.
The recent move by exchanges and other crypto businesses in the crypto market against XRP has urged Ripple Labs to issue a statement.
“The public and press have only heard the story from the SEC’s side, and we’ll be filing our response in a few weeks to address these unproven allegations against Ripple.”
It claims that the recent attack by SEC does not only concern Ripple alone but the entire US crypto market as a whole.
“The SEC’s decision to file this action is not just about Ripple, it is an attack on the entire crypto industry here in the United States. We’ve always said that there is a dangerous lack of regulatory clarity for crypto in the U.S. — their lawsuit has already affected countless innocent XRP retail holders with no connection to Ripple.”
It has further stated that the recent move by SEC has resulted in uncertainty in the market and eventually causing harm to investors they’re supposed to protect.
Ripple assured that it will continue to operate and support all its customers globally. But it’s not wavering and ready to face head-on the lawsuit filed by SEC.
“….we will defend our company and look forward to settling this matter in court to finally get clarity for the U.S. crypto industry.”
On Dec. 29, the altcoin recorded its lowest price at $0.171 in recent data by Crypto.co. Today, it has slightly recovered by 16.37% with its current price at $0.199.
Is this an indication of confidence and optimism from investors in the crypto market? Will Ripple be able to redeem itself? Will crypto companies retract their current action? Are we going to expect relisting instead of massive delisting at the start of 2021?