XRP has seen a significant drop in its value due to a combination of legal developments and negative expectations related to Ripple’s case with the US Securities and Exchange Commission (SEC).
One of the main reasons for the decline is the US Securities and Exchange Commission’s announcement that it intends to appeal a July 2023 ruling that ruled that Ripple’s institutional sales of XRP violated securities laws, while its software sales to retail investors via exchanges were not. This appeal adds to the legal concerns and uncertainty surrounding XRP, which is weighing on investor sentiment.
Additionally, there has been speculation that Ripple may seek a settlement with the SEC, which could include significant penalties and possibly restrictions on Ripple’s future activities. This speculation has also weighed on the market and led to sell-offs by investors who fear the potential impact of the settlement on the price of XRP in the future.
Overall, the murky legal situation and fears of continued legal escalation are the main factors behind XRP’s decline on this day.
