Sonali Ray, writer
Brief news
- XRP’s price fell over 8% to 53 cents following the SEC’s appeal against a favorable court ruling regarding its security status for retail investors.
- Ripple’s CEO and legal officer expressed disappointment over the SEC’s appeal but reaffirmed XRP’s non-security status.
- Bitwise Asset Management filed for the first XRP ETF, while other cryptocurrencies like Bitcoin and Ether showed minor fluctuations.
Detailed news
The price of the XRP token dropped on Thursday, a day after the Securities and Exchange Commission (SEC) filed an appeal against a court judgment from 2023 that concluded XRP is not considered a security when it is traded to individual investors on exchanges.
XRP was most recently trading at 53 cents per coin, which is a decrease of more than eight percent, as reported by Coin Metrics.
Last summer, Ripple, the world’s largest proprietor of XRP coins, achieved a partial victory following a three-year legal dispute with the Securities and Exchange Commission. The decision, which was acknowledged as a significant victory for the crypto industry, was rendered by U.S. District Judge Analisa Torres. However, XRP is classified as an unregistered security offering when it is sold to institutional investors, and it is not considered a security when it is sold to retail investors on exchanges.
Ripple declined to provide a response, but they did refer to the remarks on X by CEO Brad Garlinghouse and chief legal officer Stuart Alderoty on Wednesday evening.
Alderoty stated that the company is currently in the process of determining whether to file a cross appeal. He described the SEC’s decision to appeal as “disappointing, but not unexpected.” The SEC, under the leadership of Gary Gensler, has gained notoriety for its failure to offer clear guidance to crypto businesses, instead relying on enforcement actions to regulate them.
“Garlinghouse stated on X that XRP’s status as a non-security is the law of the land today, and that status remains unchanged despite this misguided and infuriating appeal.”
Two days after registering an XRP trust product in Delaware, Bitwise Asset Management, an issuer of ETFs tracking bitcoin (BITB) and ether (ETHW), submitted a registration filing for what would be the first XRP ETF earlier on Wednesday. Grayscale, which also offers bitcoin (GBTC) and ether (ETHE) ETFs, launched a comparable trust product in September.
The native token of the open source XRP Ledger, which Ripple employs in its cross-border payments operation, is XRP, which was developed by the company’s founders. It is the fifth-largest coin by market capitalization, with the exception of stablecoins Tether (USDT) and USD Coin (USDC).
In other parts of the crypto market, bitcoin increased by 1% to $60,941.60, while ether decreased by an additional 1% to $2,350.24. Coinbase and MicroStrategy, two cryptocurrency equities, experienced declines of less than 1% each.
Source : CNBC News
