The U.S. SEC Accuse Ripple of Illegally Selling Securities and Price Falls by More Than 10%


When the cryptocurrency market has recently risen, Ripple, the third largest market capitalization, has fallen into official disagreement. Its chief executive Brad Garlinghouse revealed to the media last night that the US Securities and Exchange Commission (SEC) has the opportunity to sue Ripple for breaking the law. Sale of unregistered securities Ripple. The price was affected by news, and it fell 12.4% to 0.45 US dollars today.

When Garlinghouse was interviewed by Fortune, the SEC may file a lawsuit against Ripple for breach of securities rules in the foreseeable future. The company’s decision to announce the relevant news is that this accusation is unusual. Garlinghouse stated that it will fight to the end, saying that the relevant decision of the regulator is shocking and is a blow to the entire cryptocurrency and American creativity. Judith Burns, a spokesman for the SEC, declined to respond to media inquiries or confirm whether it would sue Ripple. As of 9:45 in the evening, Ripple was quoted at $0.47, the decline narrowed to 4.7%.

If the SEC sells, whether Ripple is a securities product will become the focus. At present, Bitcoin and Ether, which are ranked first and second in market value, are considered by the SEC to not belong to securities products. Because of their decentralized structure, they are not controlled by any person or company. However, Ripple is different from the previous two. After Ripple issues 100 billion cryptocurrencies, the company team still has a large amount of reserves in hand, and will launch market sales as required. At the same time, the two founders, Garlinghouse and Chris Larsen, still hold a considerable amount of Ripple, making the market have a view that these cryptocurrencies are like company shares.

Ripple countered the allegations, claiming that the authorities are only selecting winners and losers in the cryptocurrency market and are destroying consumer-friendly ideas. Ripple even bluntly stated that both Bitcoin and Ether are controlled by China without supporting evidence, and completely ceded innovation in the cryptocurrency industry to China. Ripple’s current market value is approximately US$21.9 billion. When the cryptocurrency market is booming recently, its upward trend has also largely lagged behind, reaching the level of US$0.76. However, it is still far from the historical high of US$3.84 in January 2018.