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Deal
Cryptocurrency XRP fell 18 percent to a month-low on Wednesday after the U.S. Securities and Exchange Commission (SEC) accused blockchain partner Ripple of conducting an offering of unregistered securities of US $ 1.3 billion.
FILE PHOTO: Representations of the virtual currencies Ripple, Bitcoin, Etherum, and Litecoin are seen on a PC motherboard in this illustration image, February 14, 2018. REUTERS / Dado Ruvic / Illustration
LONDON – Cryptocurrency XRP fell 24 percent on Wednesday after the U.S. Securities and Exchange Commission (SEC) accused blockchain partner Ripple of conducting an offering of unregistered securities of $ 1.3 billion. .
XRP, the third-largest cryptocurrency by market value, fell to just $ 0.33, its lowest level in a month, after the SEC’s announcement, which also saw two executives from the San-based firm. Francisco charged for the personal gains they received from the offer.
Ripple has rejected the charges, saying that XRP is a currency and does not need to be registered as an investment contract.
Financial regulators around the world are still grappling with how to regulate Bitcoin, XRP, and rival cryptocurrencies. Markets are closely watching regulatory developments that could determine whether cryptocurrencies make the leap from niche to major asset.
XRP, which often moves in tandem with Bitcoin, soared in November to hit its highest level since 2018 as a rally in cryptocurrencies accelerated.
But after Wednesday’s crash, XRP has now lost half its value since the beginning of December. Bitcoin was trading 1.5% lower at $ 23,477.19.
(Reporting by Karin Strohecker, Editing by Tommy Wilkes)
