1 August 2026
XRP Price Slides Down As SEC Sues Ripple
XRP, the third-largest crypto asset by market capitalization has dropped to a two-month low. The US Securities and Exchange Commission (SEC) has filed a case against US-based major blockchain company Ripple and two of its executives over conducting a $1.3 billion unregistered securities offering.
At the time of writing, XRP seems to perform worst among the top 80 crypto assets by market capitalization today. It is trading at $0.372305 and is down by 24% in a day and 15% in a week.
The SEC has accused Ripple that its co-founder, executive chairman of its board Christian Larsen, and CEO Brad Garlinghouse has raised USD 1.3Bn through an unregistered, ongoing digital asset securities offering.
The SEC said, "In addition to structuring and promoting the XRP sales used to finance the company's business, Larsen and Garlinghouse also affected personal unregistered sales of XRP totaling approximately USD 600 million." Also, the SEC added that the company also allegedly distributed billions of XRP in exchange for non-cash consideration, such as labor and market-making services.
Director of the SEC's Enforcement Division, Stephanie Avakian said in a press release, "We allege that Ripple, Larsen, and Garlinghouse failed to register their ongoing offer and sale of billions of XRP to retail investors, which deprived potential purchasers of adequate disclosures about XRP and Ripple's business and other important long-standing protections that are fundamental to our robust public market system."
SEC asks for injunctive relief, disgorgement with prejudgment interest, and civil penalties.
Garlinghouse claimed in his letter to Ripple employees, that XRP is not secure and is "the best digital asset for payments."
He said, "In fact, the discussion around why XRP is a currency (and not a security) is one we have been having with the SEC for nearly three years and yet we’ve never been met with clarity."
He further added, "unlike securities, the market value of XRP has not been correlated with Ripple’s activities."
Explore related on CoinsCapture
Topics
Discussion
0 comments