Cryptocurrencies

SEC should declare Ripple (XRP) as security, not utility, says Peter Brandt – Cryptocurrencies

Shiny Ripple crypto-currency background

Ripple’s CTO (XRP) had attempted to address the project’s lack of adoption. XRP holders are still waiting for it to make them rich.

On paper, Ripple is a utility token necessary for the proper functioning of cross-border transaction software sold by the company to traditional financial institutions.

In practice, there is some uncertainty surrounding the legal status of XRP which may very soon leave Uncle Sam for the Empire of the Rising Sun.

The SEC lacks crypto training

The XRP is it a utility token or a speculative token? For Peter Brandt, the fourth cryptocurrency on the market is a security, so it should fall under the jurisdiction of the Securities and Exchange Commission (DRY).

In his tweet of November 10, Brandt indicated that while the SEC had a good understanding of the matter, the XRP would have been considered a title.

Comment from Brandt follows the tweet of the twitto Rexiby crypto, who declared that Ripple held half of the supply of XRP in circulation.

Brandt insinuated that this was a classic case of market manipulation.

Youkoso Ripple

The activity report for the 3rd quarter of Ripple, published on November 5, 2020, indicates that the company had acquired nearly $ 46 million in tokens XRP for the period.

Officials justify this decision by the need to support “healthy markets”. According to official data, 60 billion XRP is in the company’s wallets.

Regulatory uncertainty around XRP is at the origin of many legal proceedings based on the assumption that the XRP is an unregistered title.

The DRY itself has not yet taken a clear position. Ripple has started procedures to establish itself abroad, the legal vagueness surrounding the token’s status would threaten its activities.

The Japan would be one of the first choices of society, the XRP is one of the most popular cryptocurrencies in the country.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Will XRP be on the SEC’s hunt soon? We are still awaiting a clear and firm position from the latter on the subject. Will a leak to Japan be enough to legally cover Ripple if the SEC declares XRP as an unregistered security that has been sold in the US in the past? CFTC wants BitMEX’s skin, John McAfee is awaiting his extradition to the United States. It’s a small world, especially when Uncle Sam has a grudge against you – the Cryptoqueen however still runs.

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