As the value of XRP plummets, Ripple blames the SEC for bringing uncertainty to the market and forcing exchanges to remove the token.
As reported this month through the Webitcoi portal, the U.S. Securities and Exchange Commission filed charges against Ripple, claiming that the payment processor conducted a $ 1.3 billion unregistered bond offer.
Although the San Francisco-based company claimed that its token is a currency, not a bond, and that it will eventually prevail against the Commission, the company and its currency immediately suffered the consequences.
In addition to some Ripple partners trying to distance themselves, several cryptocurrency exchanges have started to remove the token. After the first wave, Coinbase and Bittrex were among the last to join.
In his last communication, the company said it will submit its responses in a few weeks, which will address “these unproven allegations against Ripple.”
- See too: Coinbase informs that it will suspend XRP negotiations in January
The company believes that the allegations have already harmed “countless XRP holders with no connection” with the company and “unnecessarily muddied the waters for exchanges, market makers and traders.”
The statement described as “no surprise” the fact that market participants started to remove the XRP token because the SEC introduced more uncertainty.
However, Ripple has assured its customers that it will continue to operate and support all products and customers in the United States and globally.
The company also noted that several SEC directors from different divisions have left the Commission in recent weeks. As such, Ripple hopes to work with the new SEC leadership once appointed.
It is important to note that the pre conference – judgment between the SEC and Ripple will take place on February 22, 2021. Both parties have until February 15 to produce a joint letter addressing the details of the case.
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