Ripple’s XRP Price Plummets: CEO Brad Garlinghouse Weighs In

Ripple CEO Brad Garlinghouse has expressed his concerns regarding the recent XRP price movements, particularly noting a significant decline that diverges from trends seen across the broader cryptocurrency market.

XRP is currently trading at $0.5352, having lost over 10.75% of its value in the last 24 hours. This alarming drop is particularly striking as it represents one of the few instances where a top-ranking cryptocurrency exhibits a double-digit percentage loss in such a short timeframe. In contrast, while the global cryptocurrency market faces an overall downturn, the majority of other digital tokens have experienced a more modest decline of just over 3% today, highlighting XRP’s sharp decline.

Implications of XRP’s Decline Amid SEC Developments

The drastic decrease in XRP’s price is attributed to the U.S. Securities and Exchange Commission’s (SEC) recent announcement regarding its intent to appeal the final ruling in the lawsuit against Ripple. This development has left many investors unsettled and has amplified the pressures on XRP’s value.

In the lead-up to Tuesday’s official announcement, SEC representatives made it clear during conversations with journalists that there is a widespread belief within the agency that the July 2023 court decision was mistaken and not a favorable interpretation of the law.

The specific aspect of the ruling that the SEC is contesting pertains to Ripple’s programmatic sales of XRP, which Judge Analisa Torres ruled in favor of Ripple. It’s important to note that the appeal will not address the judgment that XRP is not classified as a security, a point on which the SEC has shown agreement.

With the SEC’s official appeal now underway ahead of the critical October 7 deadline, XRP has been subject to considerable downward pressure, prompting concerns among investors about the future of the digital asset.

Furthermore, the impact of these legal proceedings on XRP’s valuation was starkly illustrated by crypto enthusiast Carlos Miguel, who shared a chart on social media capturing the steep descent of XRP’s price following the SEC’s announcement. Garlinghouse, in a now-viral post, sarcastically remarked that the price trajectory of XRP serves as a clear example of how the SEC is purportedly “protecting” investors.

This is a chart that shows you how the SEC is protecting you. (yes, that’s sarcasm.)

— Brad Garlinghouse (@bgarlinghouse) October 2, 2024

This comment from Garlinghouse shines a light on a growing sentiment among XRP holders who feel they are suffering financial losses due to the SEC’s actions, suggesting that the agency’s interference may be causing more harm than it intends to protect.

Ripple’s Leadership Expresses Frustration with SEC Appeal

Despite the SEC’s move to file an appeal not coming as a surprise to Ripple’s executives, it has nonetheless been met with disappointment and frustration within the company. CEO Garlinghouse articulated his discontent over the SEC’s decision, expressing concerns about taxpayer money being squandered on what he perceives as a futile legal endeavor.

“I’m frustrated that they are able to act without accountability or repercussions,” he stated, highlighting the far-reaching impact of the SEC’s actions on the cryptocurrency landscape. Despite these challenges, he reaffirmed Ripple’s commitment to fighting the appeal vigorously, maintaining a stance of optimism for a favorable resolution.

Joining Garlinghouse in expressing dismay, Ripple’s Chief legal Officer, Stuart Alderoty, noted that the SEC is merely extending what has already turned into a considerable embarrassment for the agency. He criticized the approach of the SEC under its current chair, stating that instead of faithfully applying the law, the agency continues to wage a litigation battle against the entire cryptocurrency sector.

“We are considering filing a cross-appeal,” Alderoty revealed, indicating that Ripple is exploring all available legal avenues in response to this ongoing regulatory challenge.

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