Over the past weeks, there were a lot of discussions over the securities aspect of a lot of cryptocurrencies, as the SEC was expected to reveal the results of an intensive series of analysis, with a huge potential over the entire market.
Any upcoming good news for XRP investors?
As previously reported, everybody who invested in Bitcoin and Ethereum have all the reasons to be happy, as they weren’t classified as securities. Still, there was a lot of mystery around Ripple’s XRP, currently the third currency on the market, in terms of capitalization.
According to Crypto Globalist, the coin appears – in many aspects – not to be a security, for a couple of specific reasons.
The SEC’s decision was based on the architectural designs, in relation to the decentralized environment, these coins operate in.
“When we think about how Ether today is operating, at least, we see a highly decentralized network, not the type of decentralized actor that characterizes securities offerings. In its current state, we don’t see value regulating it,” said William Hinman, director of Finance at SEC.
People are still skeptical
Obviously, this statement managed to generate a lot of debates around Ripple’s chances of falling in the securities category. As a side note, earlier this year, it was taken to court by a trader who claimed that he bought XRP coins and, upon selling them, made a loss of 30% from the total of 650 coins he initially got. Right after this, CEO Brad Garlinghouse responded to the accusations:
“Whether or not XRP is a security shall not be dictated by one lawsuit. The SEC is the governor of that. I think it is very clear that XRP is not a security. It exists independently of Ripple the company. If Ripple, the company shut down tomorrow, XRP will continue to exist.”
To wrap it up, it can be said that Ripple has a better chance to be declared not a security only if the parameters qualifying Ethereum will stand. The bad part is that this entire situation could delay the coin’s price from growing…