Cryptocurrency XRP tumbles 24 pct after US SEC charges Ripple

Cryptocurrency XRP tumbled 24 percent on Wednesday after the US Securities and Exchange Commission (SEC) charged associated blockchain firm Ripple with conducting a $1.3 billion unregistered securities offering.

For the latest headlines, visit our Google News channel online or via the app.

XRP, the third-biggest cryptocurrency by market value, dropped to as low as $0.33, its weakest in a month, after the announcement from the SEC, which also saw two executives of the San Francisco-based firm charged for personal gains they received from the offering.

Ripple has rejected the charges, saying XRP is a currency and does not need to be registered as an investment contract.

Financial regulators around the globe are still grappling with how to regulate Bitcoin, XRP and rival cryptocurrencies. Markets are watching closely for regulatory developments that could determine whether cryptocurrencies make the leap from a niche to a mainstream asset.

XRP, which often moves in tandem with Bitcoin, had rocketed in November to hit its highest level since 2018 as a rally in cryptocurrencies gathered pace.

But after Wednesday’s drop, XRP has now lost half its value since the start of December. Bitcoin traded 1.5 percent lower at $23,477.19.

Read more:

Bitcoin slumps 6 pct as new coronavirus strain upsets wider markets

Surging interest from major investors sends Bitcoin to peak past $23,000

With Bitcoin at its highest levels in three years, is now the time to invest?