The SEC Chairman resigned Wednesday after his recent action against Ripple triggered the sale of $ 50 billion in cryptocurrency.US Securities and Exchange Commission (SEC) Chairman Jay Clayton submitted his resignation to US president Trump, after spending more than three years as the chairman of the SEC.
Clayton’s last day in the office cost the cryptocurrency market more than $ 50 billion in losses as his latest action against Ripple triggered a massive sale in XRP, Ethereum and Bitcoin.
In his resignation letter, Clayton summed up his mission to protect investors. Under its presidency, we can say that the SEC has taken a strict stance against cryptocurrencies. Clayton recognized Bitcoin as a payment system and acknowledged the inefficiencies in existing payment mechanisms. In an interview with CNBC, Clayton said, “We determined that Bitcoin is not a security, but more of a payment mechanism and stored value. There are inefficiencies in our current payment mechanisms, these inefficiencies are the things that cause Bitcoin to rise. ” he used the expressions.
Apparently, Clayton had a different view of XRP while rejecting the option to recognize Bitcoin and Ethereum as a security.
While Clayton quietly stepped down, his latest action caused a massive sale in the cryptocurrency market. XRP, the fourth largest cryptocurrency in the world, fell from $ 0.56 to $ 0.23, losing more than 50% in just two days. XRP is currently trading around $ 0.25.
Bitcoin and Ethereum also reacted to the SEC’s latest action, dropping below $ 23,000 and $ 600 respectively. The overall market cap of cryptocurrencies was around $ 660 billion yesterday, and now around $ 610 billion. The cryptocurrency market hit its lowest market cap since December 17th.