© Reuters. FILE PHOTO: Representations of the virtual currencies Ripple, Bitcoin, Etherum and Litecoin in one illustration image
LONDON (Reuters) cryptocurrency XRP () fell 24% on Wednesday after the US Securities and Exchange Commission commissioned an affiliate blockchain company to conduct a $ 1.3 billion unregistered securities offering.
XRP, the third largest cryptocurrency by market value, fell to $ 0.33, the weakest in a month, following the SEC announcement. Two executives of a San Francisco-based company were charged for personal gains they received from the offer.
Ripple has declined the fees, stating that XRP is a currency and does not need to be registered as an investment contract.
Financial regulators around the world are still grappling with regulation, XRP, and competing cryptocurrencies. Markets are closely monitoring regulatory developments that could determine whether cryptocurrencies make the leap from a niche to a mainstream asset.
XRP, which often moves along with Bitcoin, hit its highest level since 2018 in November when a rally in cryptocurrencies gained momentum.
But after falling on Wednesday, XRP has lost half of its value since early December. Bitcoin was trading 1.5% lower at $ 23,477.19.
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