TL:DR;
- Led by bitcoin, most of the cryptocurrency market is well in the green today, but this is not the case for Ripple’s native token.
- This comes in a particularly confusing time as Donald Trump made his choice for a new SEC chair and he is someone with good history with the crypto industry.
Pro-SEC Chair at Last?
It was roughly four years ago when the US Securities and Exchange Commission initiated its lawsuit against Ripple, alleging the company and two of its top execs of illegally raising $1.3 billion by selling XRP tokens as unregistered securities. Since then, the case has undergone many tribulations and developments, but most have gone well for Ripple, which has secured a few partial wins.
The lawsuit was close to its resolution this summer when a US judge ruled that the firm needed to pay $125 million and it would be settled. However, the SEC, still under Chair Gary Gensler, appealed a 2023 verdict, thus extending the case.
Why Is XRP Dumping?
Now, though, XRP has plummeted by 12% on a daily scale, going below $2.3. Moreover, it lost its spot as the third-largest cryptocurrency to Tether as its market cap dropped to $130 billion.