Ripple Prices Plunge after SEC Says it will Sue Ripple and CEO
Following news that the United States Securities and Exchange Commission (SEC) intends to sue Ripple for selling unregistered securities in XRP, prices tanked 20 percent according to trackers. Brad Garlinghouse has since lashed out at the regulator for picking winners. On the other hand, Vitalik Buterin of Ethereum has been admonished for ripping into Ripple, calling XRP a shit coin.
The SEC is the main regulator in the US. It holds the power, determining which project complies with the Howey Test and deserves to be penalized millions for flouting rules. Several projects have fallen because of the SEC. Now, Ripple is facing off with the SEC who are convinced XRP—the native currency of the XRPL, is a security that was sold to US clients. Ripple's CEO Brad Garlinghouse is the defendant and comes after years when a complainant went seeking justice for allegedly being dubbed to buy unregistered securities in XRP. If XRP is indeed a security, it could sink below this year's lows. However, the coin's future performance will also be determined by the impending court case as it will provide the necessary clarity.
Impact on the XRP Price:
Bearish. The impending court case will either make or break XRP. If deemed to be a security, the coin will crater, falling below this year's lows.
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