In this photo illustration, the digital cryptocurrency Ripple is demonstrated on January 30, 2018 in Paris, France.
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The price of the XRP token plunged on Thursday, a day after the Securities and Exchange Commission’s announcement File an appeal 2023 court ruling confirms XRP Not considered a security When sold to retail investors on exchanges.
Ripple It was last down more than 9% at 52 cents per coin, according to Coin Metrics.
Ripple, the largest holder of the XRP coin, achieved a partial victory last summer after a three-year battle with the SEC. U.S. District Judge Analisa Torres issued the ruling, which was hailed as a landmark victory for the crypto industry. Nonetheless, while XRP is not considered a security when sold on an exchange to retail investors, it is considered an unregistered securities offering if sold to institutional investors.
Ripple declined to comment but referred to posts on X Wednesday evening by CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty.
Aldrotti said the company Assessing whether to file a cross-appealand called the SEC’s appeal decision “disappointing, but not surprising.” Under Chairman Gary Gensler, the SEC became notorious for refusing to provide clear guidance for cryptocurrency businesses, choosing instead to regulate through enforcement actions.
“XRP’s status as a non-security is the law of the land today, and that will not change even in the face of this misguided and outrageous appeal,” Garlinghouse said. say on X.
Earlier on Wednesday, Bitwise Asset Management, the issuer of ETFs tracking Bitcoin (BITB) and Ethereum (ETHW), filed an application to register the first XRP ETF – two days after the company registered XRP in Delaware Trust products. Grayscale also owns Bitcoin (GBTC) and Ethereum (ETHE) ETFs and launched a similar trust product in September.
XRP was created by the founder of Ripple and is the native token of the open source XRP Ledger used by Ripple in its cross-border payment business. It is the fifth largest coin by market capitalization, excluding stablecoin Tether (Tether) and dollar coins (U.S. Department of Agriculture).
Elsewhere in the crypto market, Bitcoin is hovering above the $60,210.29 level, while ether It fell more than 2% to $2,320.20. crypto stocks Coin library and micro strategy fell by approximately 1% and 2% respectively.