The crypto token XRP (XRP 1.58%) is trading lower on Thursday, losing 4.9% as of 1 p.m. ET despite jumping as much as 5.4% earlier in trading since this time yesterday. The drop comes as the broader market takes a dive: The S&P 500 and Nasdaq Composite dropped 4.7% and 5.4%, respectively.
The Securities and Exchange Commission (SEC) is holding a meeting today that many investors anticipate will lead to a major update in the regulators' ongoing litigation against XRP's parent company, Ripple. That meeting is not open to the public.
The SEC could have an update
Investors rejoiced late last month when Ripple announced that the SEC would finally end its ongoing litigation against the company. However, the agency never made its own announcement confirming this, and it soon became clear that Ripple had jumped the gun. The commission is still considering dropping the case, however, and many investors hope today will bring more clarity.
CRYPTO: XRP
Key Data Points
The regulator's meeting at 2 p.m. ET today will discuss "adjudicatory, examination, litigation, or regulatory matters." The details are light, and so speculation is high. XRP is dropping as investors anticipate the meeting could result in the SEC continuing its litigation.
The token is also feeling pressure from the ongoing trade war with China. Even after President Donald Trump temporarily lowered tariffs to 10% for most trading partners and indicated he is seeking individual deals with each, the White House's levies on Chinese goods are now at 125%.
The economic uncertainty is making investors wary of high-risk assets like XRP. Even if things were not so rocky, I would stay away from the token.
