As like a few days ago reported, the financial industry regulatory authority Securities and Exchanges (SEC), in terms of the timing for many of the surprising opinion that, in addition to Bitcoin Ethereum not as securities is classified. The third-largest Cryptocurrency by market capitalization, Ripple has received from the SEC, however, has not yet been classified. Perhaps the XRP, but that need not at all?
Currently very much discussed in the cryptographic community about whether or not XRP is a security within the meaning of the American law and the SEC. After William Hinman, Director of the division of Corporation Finance at the SEC has stated that a Central Criterion is the question of whether a Central company behind the Asset, which is self-invested, or the Asset sold, was for many the answer for XRP clear. As has been reported, inter alia, Kyle Samani, Managing Partner at crypto currency hedge Fund Multicoin Capital via Twitter and explained that, according to the Definition of Hinman and the SEC, XRP clearly a value paper must be.
However, now emerged a new Argument in the debate, which could suggest that XRP is not a value paper. The Financial Crimes Enforcement Network (FinCEN) has already been made in the year 2015, a decision on XRP, the native Token of the Ripple network, which can not be by the SEC replaced, as some believe.
According to a between FinCEN and the SEC in 2006, signed agreement, information about the examination and enforcement of SEC standards to be shared between the two agencies, which is why the decision of the FinCEN could be relevant.
The Twitter user Richard Holland (@code tsunami) that is not a legal expert, but developers of Open-Source-XRP-Wallets, brings this to the point:
FinCEN has already in 2015, an agreement with Ripple Inc. signed, which allows the Ripple to sell XRP. In the course of legal proceedings, Ripple Labs, 2015, from the FinCEN was accused of violation of the Bank secrecy breach by it has acted as a money service company and XRP without registration with the FinCEN sold.
Also, Ripple Labs has no adequate program for the control of money accused of laundering (AML) implemented. Ripple and FinCEN have subsequently agreed on a settlement in the amount of 450,000 USD and Ripple Labs is committed to improvements to the Ripple Protocol.
Holland has found a part of the agreement, in the Ripple as a “currency”, i.e. it is called currency.
Since Ripple can only be currency or securities, must apply, and the Netherlands, the decision of the FinCEN.
In addition, it is written in the agreement that a sale or a Transfer of XRP by Ripple Labs or any of its subsidiaries may only be made through a FinCen-registered unit. This Ripple Inc. as one of FinCen-regulated Money Services declare business.
However, there is one at this point. The settlement agreement contains a clause stating that the agreement does not provide other Federal agencies, any state, local or foreign law enforcement or regulatory binds authorities or other authorities. On the other hand, there are the above-mentioned agreement between FinCEN and the SEC.
In this respect, the legal situation remains unclear. However, the agreement with the FinCEN could be a weighty Argument for Ripple and XRP is not a value paper. Ultimately, the decision seems to be still open. The last word is the SEC.
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