XRP price had fallen nearly 5% on the 5-day chart Tuesday. Just five days earlier, the Securities and Exchange Commission appealed a recent U.S. court ruling that mostly favored Ripple Labs.
Ripple opened Wednesday morning trading at an average price around $0.61, after changing hands above $0.80 just last month. That was after SDNY judge Analisa Torres, ruled that XRP traded on crypto exchanges is not a security.
This is at least the fourth time the XRPUSD markets have made big swings on crypto exchanges with lots of volatility after a new development in the SEC vs. Ripple lawsuit. These developments are not directly related to the value XRP provides as a product.
When the commission first filed its suit against Ripple Labs in Dec 21, 2020, the price immediately plunged.
Then on Mar 22, 2021 when Judge Netburn ruled that XRP is a currency with utility value distinct from BTC and ETH, Ripple’s price rallied from $0.52 to $0.55 during week when BTC fell 2.8%.
Altcoins were up that week, but the big blue chips were down on the charts. Ethereum fell over the period as well. So it might have had something to do with the SEC case.
More recently this July, XRP spiked 72% after Judge Torres ruled mostly in Ripple’s favor. And now the price is back own again after the SEC’s appeal. It could be fairly argued the SEC is manipulating XRP more than any efforts made by Ripple Labs.
The SEC’s mission is to protect investors and ensure fair, orderly, and efficient markets. Unfortunately, the approach it has taken under Gensler’s leadership has sown more fear, uncertainty, and doubt in markets. It has created more volatility and surprises in markets.
It stands to reason that this hurts the least sophisticated investors the most, while the largest concerns have the resources and wherewithal to remain apprised of the ongoing legal proceedings regarding this asset.
When will the SEC start protecting retail investors by giving the federal policy process time to work instead of using the shoehorn for its mighty heel?
