A former Securities and Exchange Commission commissioner Joseph Grundfest has expressed displeasure over the recent suit filed against XRP company Ripple by the SEC, stating that the lawsuit will lead to financial loss for XRP holders.

According to The Block, in a letter to the former chairman of SEC Jay Clayton, Grundfest said that it does not matter what the outcome of the suit might be, it will still harm the value of the digital currency.

“Upon learning of the proceeding, intermediaries will cease transacting in XRP because of the associated legal risk. The resulting reduction in liquidity will cause XRP’s value to decline,” he wrote.

In the last 24 hours, bitcoin is up by 0.65%, still maintaining its 23k mark, with a current price of $23,242.04. Within 24 hours, bitcoin dropped to $22,644.56 low and experienced $24,086.95 high. The trading volume of bitcoin in the last 24 hours is $45.61B. The current market capitalization of bitcoin is $431.82B. Currently, 18,579,893.75 bitcoins are in circulation.

Stats and Image by Coin Desk

More digital currency trading platforms and payment processors are cutting ties with XRP due to the recent lawsuit filed against it by SEC. Latest among them are Jump Trading, Galaxy Digital and Simplex.

All these, according to Grundfest will lead to multi-billion-dollar losses to innocent third parties who have invested in XRP.

“I am aware of no instance in which the simple announcement of a Commission enforcement proceeding has absent allegations of fraud, misrepresentation, or omission, caused multi-billion-dollar losses to innocent third parties. Creating precedent, and imposing losses, of this sort, raises public policy concerns that would benefit from the views of an incoming administration.”

According to statistics on Coin Desk XRP is trading at $0.27, having plunged by -13.92% in the last 24 hours at the time of writing this report.