Cryptocurrency Market Sees Volatility as XRP Token Plummets
The cryptocurrency market experienced a significant downturn on Thursday, with the XRP token taking a major hit. Following the Securities and Exchange Commission’s (SEC) decision to appeal a 2023 court ruling, XRP’s value plummeted by over 9% to 52 cents per coin.
The court ruling had deemed XRP not a security when sold to retail investors on exchanges, but the SEC’s appeal has cast uncertainty over the token’s future. Ripple, the largest holder of XRP coins, had celebrated a partial victory last summer after a three-year battle with the SEC.
However, the SEC’s decision to appeal has been met with disappointment from Ripple’s CEO Brad Garlinghouse and chief legal officer Stuart Alderoty. Garlinghouse took to social media to express his frustration, stating that XRP’s status as a non-security remains unchanged despite the appeal.
Meanwhile, Bitwise Asset Management has submitted a registration filing for an XRP ETF, which would be the first of its kind. Grayscale, another major player in the crypto market, had introduced a similar trust product in September.
The broader crypto market also felt the impact, with bitcoin hovering above $60,000 and ether falling over 2%. Crypto stocks Coinbase and MicroStrategy were also down by around 1% and 2%, respectively.
The SEC’s decision to appeal has raised concerns over the lack of clear guidance for crypto businesses, with many calling for regulatory clarity in the industry. As the market continues to navigate this uncertainty, investors remain cautious, waiting to see how the situation unfolds.
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