On December 29 blockchain company Ripple has released a new statement concerning the SEC and the latest market participant activity.
Within an official blog post, the company describes the ‘one-sided’ actions of the SEC which have affected XRP investors worldwide. According to Ripple, the SEC will receive a response in the coming weeks that addresses the ‘unproven allegations’ against the firm.
Operators of the world’s fourth-largest cryptocurrency have published a brief response to the SEC’s allegations, noting that the regulatory agency harms the U.S. blockchain industry.
Furthermore, the company revealed that the decisions made by the SEC have not only affected the U.S. but international investors as well. One section from the blog post states:
“Their (SEC) lawsuit has already affected countless innocent XRP retail holders with no connection to Ripple. It has also needlessly muddied the waters for exchanges, market makers and traders. The SEC has introduced more uncertainty into the market, actively harming the community they’re supposed to protect. It’s no surprise that some market participants are reacting conservatively as a result.”
Now, Ripple plans to release and file an official response that will disprove the watchdog’s claims. The crypto community can expect the filing to be released in the coming few weeks.
The team stated that they will defend their company and settle the matter in courts, which will result in finally ‘getting clarity‘ for the U.S. crypto industry.
Ripple looks forward to working with new SEC leadership, reveals statement
An excerpt from Ripple’s newest blog post reveals that the blockchain firm looks forward to working with the SEC’s new leadership.
They note that the SEC Chairman and six of his directors from various divisions have already departed. Once appointed, Ripple seeks to start a constructive discussion with the future Commissioners.
As Defiye previously reported, the very first rumors of an SEC lawsuit against Ripple emerged on December 22. Ripple’s CEO Brad Garlinghouse issued several statements that day about an incoming regulatory threat that seeks to categorize XRP as an illegal security.
Before the lawsuit was even published, Ripple claimed that the SEC is hurting the blockchain industry in the United States. Moreover, a document published at the time called both Bitcoin and Ethereum ‘Chinese controlled cryptocurrencies.’
Only a few days later, the SEC officially launched a lawsuit against Ripple which claims that the company sold up to $1.3 billion in an unregistered securities offering.
XRP price crippled by SEC news
As one of the harshest regulatory news in recent crypto history, SEC’s lawsuit has severely affected XRP’s price. The token was already in the midst of a crash following the recent SPARK airdrop. The news has only caused the crash to become steeper as XRP lost a majority of its former value.
When Ripple’s CEO mentioned a potential lawsuit for the very first time, XRP lost almost 50% of its value in the span of only 48 hours.
After the SEC launched the lawsuit, the cryptocurrency continued to crumble even further. Regulatory uncertainty caused holders and investors to quickly sell in a herd-like fashion.
A local bottom was reached on December 29 when XRP cost only $0.18. At the time of writing, the digital asset costs $0.21 and has slightly recovered. While this may be the perfect place to buy for XRP community members with strong hands, the SEC’s final decision may deal a fatal blow to crypto’s most controversial asset.