- XRP community petitions US government to recognise the token as currency
- Says the SEC lawsuit as led to financial losses for American investors
Members of the XRP community have petitioned the US Government to recognise the token as a currency and not as a security.
According to the community members, the lawsuit that the Securities and Exchanges Commission (SEC) initiated against Ripple has had a dilapidating effect on the value of the asset. The petition mentions that the litigation pushed the market capitalization of XRP from $40 billion to a little over $10 billion within just a few days.
The drop in the asset value has also led to it dropping from its top three position into number four on the ranking tables of crypto assets. Tether has taken the XRP position behind Bitcoin and Ethereum.
They also highlighted that the litigation has forced many crypto exchanges like Bittrex, Binance, Coinbase and the rest of them to suspend trading the token on their platform. These exchanges had taken this action in order to comply with the authorities’ regulations.
The petition further adds that the lawsuit has led to loss of investment and financial wealth among American investors who had invested in the token. This loss, they believe, was caused by the SEC. They pointed out that the Financial Crime Enforcement Network (FINCEN) already recognizes the token as a currency.
XRP suffering from the impending litigation
Since news emerged that the SEC was going to be filing a lawsuit against Ripple, the native token of the firm has struggled massively since then.
The market capitalization of the token has suffered greatly. The token dropped from number 3 to 4 on crypto ranking with Tether usurping it. The value of the token also dropped to around the $0.20 level.
The asset has also been delisted by major crypto exchanges like Coinbase and the rest of them due to this upcoming lawsuit.