Grayscale dumps over 9 million XRP amid SEC accusations

Grayscale, one of the largest digital asset managers, has sold more than a third of its stake in XRP.

This follows the announcement of the SEC’s charges against Ripple Labs and two of its executives.

The SEC accuses Ripple of selling over $ 1 billion in unregistered securities.

Grayscale, one of the largest digital asset management companies with $ 10 billion in crypto under management, has made a radical decision about the future of XRP.

Following official charges by the Securities and Exchange Commission (SEC) against Ripple Labs and two of its executives, Grayscale has decided to sell more than a third of its stake in XRP .

This sale of 9.18 million XRP took place on December 29, as many other exchanges and companies have recently decided to remove Ripple from their listing.

Grayscale divested of 9.18 million XRP on December 29.

Like I said… protect your capital.

Grayscale is authorized to sell securities

There is a big difference between Grayscale and many other international exchanges that have decided to take XRP off their list: Grayscale is fully regulated by the SEC.

The company caters to institutional and accredited investors, which means the company must be fully compliant in order to operate. As an SEC-compliant company, Grayscale shouldn’t have any legal problems selling XRP, even if it’s considered a security.

So it would appear that Grayscale chose to take XRP off the market for other, non-regulatory reasons.

Grayscale recently ramped up its operations, adding billions of dollars in cryptocurrency to its balances within weeks. This increased growth, coupled with the massive sell-off of XRP, indicates that the company may not see a solid future for XRP among its customers.

More issues to come for Ripple and XRP

Brad Garlinghouse, the current CEO of Ripple Labs, has said XRP should be viewed as a digital currency just like Bitcoin and Ethereum, but the SEC disagrees.

There are many facts that potentially refute Garlinghouse’s statement. According to the SEC, Ripple derives a significant portion of its revenue from selling XRP to its customers.

The agency thus alleges that Ripple and some of its executives sold more than $ 1 billion in unregistered securities, a charge that could bankrupt Ripple and XRP if confirmed. Today, even exchanges that offered the sale of Ripple in the United States, like Coinbase , are also being sued for selling unregistered securities.