Ripple says the U.S. Securities and Exchange Commission (SEC) “caused havoc” in the crypto markets after alleging the company illegally sold XRP as an unregistered security.
In its fourth quarter 2020 markets report, Ripple cites the pausing of XRP trading on many US platforms as a key part of a crypto fallout triggered by the regulatory agency.
“The SEC’s filing needlessly muddied the waters for exchanges, market makers and traders. It’s disappointing and disruptive that some market participants, specifically in the United States, reacted as they did.
Ripple identified 33 market participants that announced some sort of restrictive action against XRP. However, most articulated a pausing of activity, not a delisting from their infrastructure, including Coinbase, which only suspended its trading services.”
Ripple says the SEC lawsuit is responsible for the “destruction of XRP value,” with 12% of XRP’s total volume affected.
“Ripple has always said that there is a dangerous lack of regulatory clarity in the United States. Market participants do not have clear rules of the road, hindering crypto innovation and development.
After the SEC filing, the crypto markets experienced some aftershocks and a negative impact on volumes. Ripple estimated that approximately $200M of XRP volumes per day were impacted last quarter…
while U.S. regulatory action caused havoc and prompted U.S. market participants to withdraw from a massive global virtual currency market, close to 90% of XRP volumes remained intact and many market participants moved forward with business related to XRP outside the U.S. This further underscores the fact that the U.S. is out of step with its international counterparts.”
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