The Price of Ripple has crashed by almost 40% after SEC filed a case against Ripple Inc.
SEC mentioned in the compliant that "Ripple Inc. sold over 14.6 billion units of a digital asset security called " XRP" to fund Ripple's operations and enrich Larsen and Garlinghouse. And the distribution was undertaken without registering their offers and sales of XRP with the SEC as required by the Federal securities law".
image : coindesk
The compliant was filed on 22 December and we can see the effect of it on the price of the coin. The coin crashed from $0.52 and reached below $0.3.
The blog published on the same date by Brad garlinghouse on Ripple official website claims that SEC is completely wrong on the facts and the law. He further says Ripple is similar to other currency like Bitcoin and Ether, and not an investment contract. Further, Other major branches of the U.S. government, including the Justice Department and the Treasury Department’s, have already determined that XRP is a currency.
Source: SEC complaint , Blog from Ripple official website
