Ripple’s XRP has lost nearly 40% of its value after the token price fell from $ 0.51 on December 21 to $ 0.31 at the time of writing. The token’s dive appears to be the result of legal action against Ripple by the US Securities and Exchange Commission (SEC). At the time of writing, the fourth-placed crypto token had recorded 24-hour traded volumes of $ 4.85 billion.

$ 1.3 billion lawsuit

As data about suggests, the sale of the XRP token appears to have been fueled by Ripple CEO Brad Garlinghouse warning that the SEC was about to start legal proceedings against the company. A day later, the SEC announced the $ 1.3 billion legal action against Ripple and two of its executives for allegedly executing an unregistered security offering.

XRP token is down nearly 40% after SEC charges announced against Ripple

Meanwhile, such as the XRP token continues to fall, an angry Garlinghouse has accused the US regulator of being biased against Ripple while appearing to be giving a free pass to BTC and ETH. In its decision, the SEC says it XRP is a security and therefore subject to the requirements of the United States Securities Act. Garlinghouse, who has previously threatened to leave the United States due to its regulatory approach, rejects the characterization of XRP as security.

In his many very public attempts to push back against the SEC, Garlinghouse puts it XRP token is a fully functional currency that offers a better alternative. He adds that in addition to bitcoin and ether, “the two Chinese controlled virtual currencies” according to the company, XRP ranks as one of the most capitalized cryptos.

XRP token is down nearly 40% after SEC charges announced against Ripple

Crypto Community is responding

However, the last comment seems to have prompted a quick response from some bitcoiners and the ETH creator Vitalik Buterin. In his tweet, Buterin accuses Garlinghouse and his team of “sinking to new levels of strangeness”. The ETH maker adds:

They argue that their shitcoin should not be called security for * reasons of public policy *, namely because Bitcoin and Ethereum are ‘controlled by China’.

Mike Novogratz, the CEO of Galaxy who, is also weighing in on the controversy says he “thinks it’s strange that Clayton has been waiting for this for years.”

XRP token is down nearly 40% after SEC charges announced against Ripple

Ryan Selkis, on the other hand, thinks the SEC will lose this case because it is “legal outclass.” He adds that the classification of XRP as security “will harm US companies even more, while international companies will continue to create these markets.”

Meanwhile, at the time of writing, reports surfaced that the trading platform OSL had in Hong Kong suspended XRP services as a result of the SEC lawsuit.

Do you think the XRP token bounces back? Tell us your thoughts in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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