On Dec. 22, the SEC launched a major enforcement action against Ripple. It alleges that Ripple’s management sold .3 billion of unregistered securities to the public without proper disclosure. More specifically, the SEC states in part that:
Ripple (CCC:XRP-USD) has had a bit of a rocky road as a project. The coin has fallen from a peak of more than in early 2018 to around 45 cents now. In comparison with Bitcoin (CCC:BTC-USD), Ripple looks even worse, as the price of Bitcoin has more than doubled over that same span.
In the wild west that is the crypto space, it speaks to Ripple’s strength that it was able to endure a blow like that and keep on moving forward.
SEC Takes Aim
However, we must give some credit to Ripple. It’s still the sixth largest crypto asset out there despite its underperformance in recent years. Adding to that, it has managed to hold that spot despite taking fire from the Securities and Exchange (SEC) commission.
Ripple raised funds, beginning in 2013, through the sale of digital assets known as XRP in an unregistered securities offering to investors in the U.S. and worldwide […] According to the complaint, in addition to structuring and promoting the XRP sales used to finance the company’s business, [Ripple co-founder] Larsen and [CEO] Garlinghouse also effected personal unregistered sales of XRP totaling approximately $600 million. The