XRP, Ripples native utility token, has been stuck under $0.25 for a number of months now, as traders wait for bullish news to arrive. "So what happens to XRP holders if XRP is declared a security and has to be registered with SEC?", a Twitter user recently asked John Deaton, the attorney representing over 67,000 XRP holders with amicus curiae status in the case. (Not sure how this will affect the price. It demonstrates Ripples seriousness in building a mainstream payment network, and it is likely to increase XRPs price in the future. Litecoin ranks among most popular cryptocurrencies for online shopping in 2022 - CoinGate report, Machine learning algorithm sets XRP price for March 31, 2023, Market cap of AI cryptocurrencies hits $4 billion following $1.6 billion of inflows in a month. What is the most secure cryptocurrency? The term shitcoin refers to a cryptocurrency with little to no value or a digital currency that has no immediate, discernible purpose. Despite the fact that Ripple had some success during the hearings, the final result of the lawsuit is still unknown, which is very important to keep in mind. It could also mean that XRP would likely be declared a commodity or a currency, relisted on U.S. exchanges and the price, which cratered after the SEC filed its suit, could surge. The result is that XRP remains decentralized and is faster and more reliable than many of its competitors. There is another asset class that it may belong to (money), but it is not a security. Going after individuals who broke the law is different." Not only that, in another tweet, Deaton says that XRP as well as ETH, ALGO, ADA and XLM should be considered commodities rather than securities. There are a lot of facts and circumstances that can be unique, but for Ripple, and what the SEC is trying to do, I do think its just the SEC trying to overreach the statute., It all started yesterday when a crypto enthusiast JayV on Twitter said a settlement that allows ripple to carry on with no changes opens up a new world of problems., What problems do you foresee from a ruling that says that a sale of a commodity with no post-sale obligations of the seller to the buyer is not an investment contract?, If the judge rules in a way that clearly articulates that ripples sales are not security transactions then its fair game.. but I dont see that coming from Gary.. also I believe that with that type of ruling, she must fully breakdown how #xrp constitutes a commodity.. It was issued via ICO, there was premine, (Video) Owning Security Tokens Is Easier Than Crypto. Built for payments, the XRPL and its built-in decentralized exchange (DEX) can support the issuance of stablecoins with a unique, fungible token functionality called Issued Currencies. Do note that BTC and ETH, the top 2 cryptocurrencies, are already considered commodities. Following the SECs action against Ripple, the price of XRP on Coinbase has taken a significant hit. Cryptocurrencies are replacements for sovereign currencies [they] replace the yen, the dollar, the euro with bitcoin. The key distinction is that it's decentralised and no one controls it, whereas securities are released by a central authority. So most likely they will argue that in court and probably end up deeming XRP as not a security in the end anyway. This is a significant coup for Ripple, demonstrating the companys commitment to building a full-scale Ripple payment network. What happens if ETH is declared a security? So What happens if XRP wins the SEC lawsuit, because in all fairness this certainly is a possibility, what happens next? Tutorial: How to set up a Bitcoin Full Node, Bitcoin Solves This: Billionaires Own More Than 4.6 Billion People Combined, EOS Suffered a Huge dApp User Drop Out, Latest Report Finds, Cerus Markets Launches its Mobile Trading App $10,000 Giveaway, BitCard and Blackhawk Network (BHN) to Offer Bitcoin Gift Cards at Select U.S. Retailers, Collateral Network (COLT) Is A Hidden Crypto Gem, Along With Quant (QNT) and Litecoin (LTC), Flow (FLOW) and Polygon (MATIC) Left Behind As Orbeon Protocol (ORBN) Emerges As Top Token, Whats the Next Crypto to Explode in 2023? The SEC's Claims In their legal action made at the end of December, the SEC claimed that XRP is classifiable as a security because it was used to finance Ripple's platform, which facilitates money transfers for retailers. Realistically, if XRP is considered to be a commodity by the US courts sometime in the near future, then it is likely that well see the price retest last years high of $0.50 before potentially breaking towards $1 if FOMO traders pile into the rally. Ripple continues to be locked in a court case trying to establish the status of XRP. JackTheRippler (@RippleXrpie) January 14, 2020, Comex rule 589 and I trust the bear. To be a cost-effective, fast, and efficient currency, it is intended to be used by cross-border payments. The most famous example is Dogecoin. A XRP security could be granted by the SEC, which means that Ripple Labs would be required to pay a fine if it did not follow the SECs security guidelines. The SEC document provides valuable insights into the process of tokenization and the definition of a security, but there is still no explanation as to how it reached its conclusion. The price of Ripple's XRP token is weighed down by concern due to the SEC's lawsuit alleging the illegal sale of unregistered securities. Like many other digital coins, XRP has spiked in value this year as major investors and companies have warmed to. Win a CryptoPunk. In other words, XRP is not a security because it does not meet the definition of a security term, as does most other cryptocurrencies. SEC Case Against Ripple Now Slated to End in 2023, Pressuring XRP. xNEO (@XRP_Anderson) February 25, 2019. Although it is reported that most bitcoin transactions (98.9%) are not associated to criminal activity, the birth of cryptocurrency has provided individuals with new mediums to facilitate criminal activity. Looking at XRP as a vehicle for speculation, as some cryptocurrencies have become, there is an expectation of buying XRP, seeing a rise in the price and then selling for profit. Ripple connects banks, payment providers and digital asset exchanges via RippleNet to provide one frictionless experience to send money globally. The XRP Ledger consumes 61,000 times less energy than a proof-of-work blockchain. Christine Vasileva is a financial news and business writer, tracking the latest developments in fintech and the effect of blockchain and crypto-assets on global business and finance. , so the public hopes for returns from their investments. Would XRP be considered stock? Given how far XRP has fallen in price, the future of this cryptocurrency appears bright. What is the biggest northern pike ever caught in the United States? The allegations against Ripple Labs could signal a market shift toward a new wave of growth. The SEC is accusing the two Ripple Labs execs of selling over 14.6 billion XRP tokens as means to fund the company and get rich. What Is Shitcoin? However, if Ripple is successful in getting more banks to use its platform and currency, then it is likely that the price of XRP will continue to increase. That wouldnt be too bad either. If Ethereum explodes again in 2022, it will likely be a very big explosion. I evaluate XRP as a digital commodity unlike most youtubers/influencers/etc. How Many Bitcoins Have Been Mined? Ha. First, on the most literal level, the category of asset it belongs to is not included in the definition. The short answer is yes. The SEC is trying to get ripple to stop selling from their escrow. 2 now the good news. According to the attorney based in Florida, the result of the lawsuit between Ripple and the SEC is being eagerly awaited across the sector, with Pickett highlighting that: If Ripple is successful in their lawsuit, it could help solidify XRPs legality in the US market, which would benefit its price.. The cryptocurrency fell over 17% Tuesday, to trade around 46 cents. XRP will not magically morph into stock if deemed a security. The current CoinMarketCap ranking is #6, with a live market cap of $20,295,207,151 USD. Notably, if the regulator is successful in this case, it might have very negative repercussions for XRP, its investors, and the cryptocurrency sector as a whole. All . Investing is speculative. Actual XRP usage, even with the status of a commodity, may remain low. Reality or Hopium?Chapters00:00 Intro05:39 LightFTSO Tweet Thread - 280k FRL grant on Jan 8t. Yes & No. If your coins give more value out of their derivative products, they are likely to be considered a commodity. XRP is a digital asset that is used to facilitate cross-border payments. , (Video) Security in the Blockchain Ecosystem in Africa. Visit our. If it's not, then the company will be able to go back to life as usual. XRP can be valued at up to $0.16 at a time. When Ripple launched its cross-border payment network in 2005, it used the XRP currency. An SEC lawsuit filed in December accuses Ripple of violating federal securities laws. This website uses cookies. So much so that currently XRP is the 3rd largest digital asset in the world while Ripple has plans for an IPO. What happens if ETH is declared a security? Therefore, it is important to . It also means that the XRP consensus system consumes negligible amounts of energy as compared to Bitcoin, which is considered an energy hog. Ripple has been fighting the case that this digital asset is not in any form resembling a security, and should exist outside the scope of the Securities and Exchange Commission. Tokens like #XRP, #ETH, #ALGO, #ADA, #XLM, etc., traded for 5-10 years should be treated as commodities, not securities.. But for now, the decision on the lawsuit may lead to a much smaller rally, with $1 still a target. " 570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Use of this site constitutes acceptance of our Terms of Service. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. BoE governor argues a digital pound could protect against bank runs, Machine learning algorithm sets Terra Classic (LUNC) price for January 31, 2023, Rivian stock down 8% premarket after earnings: Analysts' share end of2023 predictions, AI predicts AMC stock price for the end of 2023, We asked ChatGPT what will be Amazon (AMZN) stock price in 2030, AI predicts Tesla (TSLA) stock price for the end of 2023. The creator of the Cardano blockchain on the regulatory attack on crypto: what is the trigger? Ripple Labs announced last week that it had joined the Linux Foundation as Platinum level members. Ripple will concentrate its efforts outside of the country if it loses its lawsuit, effectively operating as it has since the SEC sued it in 2020. The price of XRP, the native token of the Ripple network, has seen a lot of volatility in recent months. John Deaton vs. Gary Gensler: the case of Ethereum becoming PoS, In the meantime, the long-awaited Ethereum Merge is scheduled to take place on, , while as early as tomorrow software clients operating with Ethereum will have to be updated as the, NFTs: 56 Italian and international artists on display in Times Squares. For this same reason, he noted: Ripple will likely prevail against the SEC claim Ripple must register its tokens like a security. XRP as a Currency . XRP is not currently available in the U.S. on many crypto exchanges. 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