xrp cryptocurrency price

Ripple’s XRP token has fallen more than 30% after the SEC filed a lawsuit against the cryptocurrency firm | Currency News | Financial and Business News

A ripple coin stands on a table
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Ripple coin stands on the table

Ripple’s cryptocurrency XRP plunged as much as 32% on Wednesday, after the US regulator filed a lawsuit against the company’s executives over the token sale.

  • XRP lost as much as a third in value after the US regulator charged cryptocurrency firm Ripple over how it sold the digital token.
  • The coin dropped to its lowest level since November 20, effectively erasing last month’s 177% gain.
  • The CEO of Ripple described the SEC’s claim as “illogical” in a blog post on Tuesday.
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XRP was last down 27% to $0.325, the lowest since November 20.

The US Securities and Exchange Commission filed a lawsuit on Tuesday. She said that blockchain firm Ripple was running an unregistered offering worth $1.3 billion, similar to an unauthorized stock sale, because it did not consider the XRP token a cryptocurrency.

Ripple CEO Bradley Garlinghouse, who is named in the lawsuit, said the Securities and Exchange Commission has not given the company “clarity” about whether its XPR offering is classified as a currency or security.

“To be clear, this is all based on their unreasonable claim that XRP is, in their eyes, somehow the functional equivalent of a share of stock,” Garlinghouse wrote on Ripple’s blog.

As the crypto industry has exploded in the past decade, the Securities and Exchange Commission and other agencies have struggled to classify and regulate it.

In a separate action, the US Treasury Department’s Financial Crimes Enforcement Network last week proposed new disclosure rules to improve monitoring of crypto wallets.

Cryptocurrency investing has boomed this year, sending the price of coins like Bitcoin to record levels. XRP, a smaller competitor, traded at its highest levels in two and a half years as recently as a month ago. Last week, it lost more than 40% in value, almost erasing the 177% high in November.

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