Over 35,000 people have signed an online petition calling on the US federal government to classify the cryptocurrency XRP as a currency.
Ripple investors are desperate
On December 22, 2020, the Securities and Exchange Commission (SEC) announced a lawsuit against Ripple Labs Inc. and two of the company’s executives, alleging they raised over $ 1.3 billion through an unregistered digital asset securities offering .
This has resulted in mass delistings of XRP and brought the price down. Many frustrated XRP fans and investors are currently trying everything to absorb the negative development.
The petition says:
The job of the Securities and Exchange Commission is to protect investors in US securities. However, it has filed a rash lawsuit claiming that the cryptocurrency XRP, which has already been classified as a currency by FinCEN, is a security.
Since the SEC announced the lawsuit, Ripple’s price has fallen dramatically. After trading at $ 0.56 on December 21, 2020, XRP fell 67% to $ 0.18 by December 29.
Since then, XRP has climbed slightly to $ 0.24 but has failed to rebound to what it was before the SEC’s announcement.
XRP risk has increased
The initiator of the petition claims that the SEC’s decision cost investors a lot of money and that the government agency is supposed to protect them from it. An allegation that is unlikely to find resonance with the SEC, and which could worsen the situation.
„As a result of this action, the $ 40 billion market for the currency is collapsing rapidly as companies struggle to maintain compliance,“ the petition said, adding: „Hundreds of thousands of ordinary Americans – just the Americans who do.“ the SEC is supposed to protect – suffer irreparable damage. “
Meanwhile, the petition has already garnered 35,000 signatures. For the government to respond, another 65,000 signatures must be collected.
It remains exciting at XRP. The risk of holding the cryptocurrency has increased since the issue with the SEC. It is unclear what decision will be made there and what consequences it will ultimately have for XRP. With such a highly speculative asset, if there are uncertainties, the money flows out quickly and there are no new buyers.