The Securities and Exchanges Commission (SEC) has wiped off billions from XRP’s value in just one day.
The currency stood at a market cap of $23 billion just yesterday. Now it’s at $13 billion as it falls below the support line of $0.3 per XRP.
This is the first time ever that a regulatory decision has taken off billions just before Christmas from a globally traded and held asset.
The Securities and Exchanges Commission decided to file a lawsuit against Ripple Inc, the company behind XRP, over their failure to register as a security some seven years ago.
Despite SEC running XRP nodes for a year and a half, they decided now to take action, instead of last year or even two years ago when they were first considering whether cryptos were under their jurisdiction or otherwise.
In addition it isn’t clear what exactly they require of Ripple and/or whether they would grant them a security status.
What is clear however is that SEC has fully failed to protect XRP investors, and in fact has caused them to lose billions in value contrary to their mandate or their stated aim to protect investors.
That will probably lead to increasing calls for this regulator to be broken up because it is too powerful and too easy to capture, with it too often causing harm to investors rather than protecting them.