Ripple CEO Critiques SEC’s ‘Investor Protection’ After XRP’s 11% Price Drop

• XRP’s price fell over 11% to $0.5101 following the SEC’s announcement to appeal.
• CEO Brad Garlinghouse criticized the SEC’s actions, suggesting they harm rather than protect investors.
• Despite a slight recovery to above $0.53, investors who bought last week still face losses exceeding 9%.

Ripple CEO Brad Garlinghouse commented on XRP’s latest price drop, which saw the cryptocurrency fall by over 11% in a single day. On Thursday, XRP plummeted to $0.5101 after trading significantly higher at $0.6058 earlier in the day.

The sharp decline in XRP’s price came in response to the U.S. SEC’s announcement that it would appeal the rulings in the concluded Ripple lawsuit, which triggered a substantial sell-off in the XRP market.

Crypto enthusiast Carlos Miguel shared a graph on X illustrating the dramatic price drop. Garlinghouse responded with a sarcastic comment, implying the XRP chart shows how the SEC is “protecting” investors. His remark highlights his view that the SEC is harming XRP investors, contradicting the agency’s stated mission.

XRP’s price has since recovered by 4% from Thursday’s low, trading just above $0.53. However, investors who bought XRP last week remain down over 9%.

SEC Moves Forward with Appeal

The SEC’s appeal stems from the agency’s belief that the July 2023 ruling in favor of Ripple and XRP was flawed and misinterpreted the law. The SEC is particularly challenging Judge Analisa Torres’s ruling regarding Ripple’s programmatic sales of XRP.

On Friday, the SEC formally filed its appeal with the Court of Appeals for the Second Circuit, which has been docketed in the Second Circuit’s PACER system.

Legal commentators emphasize that the SEC is not—and cannot—contest the ruling that XRP itself is not a security. The agency accepts this aspect of the ruling. Despite this, the SEC’s decision to appeal is negatively impacting XRP’s price.