Bitcoin, Crypto currency, Blockchain

Ripple explained: XRP Token definitely not a securities

About a week ago, the subject came up, whether Ripple is a security within the meaning of the American stock exchange Supervisory authority SEC (Securities and Exchange Commission). This would have far-reaching consequences, because crypto currency exchanges offering XRP to trading, would then need a license from the SEC. Now the Marketing boss of Ripple has expressed its opinion and made it clear that Ripple is definitely not a value paper.

The topic is so interesting because of the legal situation in the USA is currently still unclear whether and to what crypto-currencies as a “Security”, so as part of the securities of the stock exchange Supervisory authority SEC.

As a result, crypto-currency exchanges, the offer of securities, with the SEC to register and stricter guidelines would need to. This would mean for Ripple that it is much harder to be on crypto currency exchanges (such as Coinbase, or Gemini) listed, and therefore to obtain a wider access to the investors market.

A few weeks ago, the SEC had warned that crypto-currencies to lists, which might be considered securities. The US stock exchange Supervisory authority has published in the past few months, numerous subpoenas and requests for information for ICO operator.

Cory Johnson, head of the Marketing Department of a Ripple, said in an Interview with CNBC that the XRP Token is no value in paper (freely translated):

We are absolutely of no value paper. We do not meet the Standards for the compliance requirements for a securities America Shechem law.

To CNBC, Johnson also stated that it was raised in talks with Coinbase (for possible listing) never a question of whether the XRP Token is to be classified from the point of view of the SEC as a securities.

Coinbase has raised in our discussions on the listing of XRP never a question of whether XRP is a security. We are 100 percent clear that there is no security. We do not meet the Standards.

CNBC reported that a spokesman from Coinbase has confirmed this statement, and that the stock market had never discussed a possible regulation with Ripple. In the discussions it had gone exclusively to the fulfilment of the publicly accessible criteria for the addition of new crypto-currencies in the case of Coinbase.

The price of Ripple surged yesterday after the announcement of the Santander App, xCurrent, short-term in the amount. Within the last 24 hours was able to Ripple a slight price increase of just under 2 percent.

The price for XRP-Token is 0,53 euros and a market capitalization of 20,52 billion euros. This night the roller coaster ride the crypto world was going on, where the current shows a slightly positive Trend. The next days will show where the journey goes.

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