The SEC has recently announced that Bitcoin and Ethereum should not be used as the value of paper classified. What is it with XRP? We have researched and four reasons found for why it’s (probably) not receive any securities classification.
Refutation of a XRP-securities-classification
In a speech last week, William Hinman, the Director of the Department for Corporate Finance at the Securities and Exchange Commission (SEC), the attitude of the regulator explained that Bitcoin and Ether, are not securities. These are the only final classifications of existing crypto-currencies (ICO and stock market regulations are in progress). A lot of XRP-supporters wonder why the native Token of the Ripple is no similar classification.
1 . The XRP-network moves in the direction of decentralization
The Version of Ripple v1.0.0 does Not contain a Change in the Ripple for each of the two added Ripple validators removes its own Validator in the network.
2. XRP acts independently of the company Ripple
XRP was first published in 2004, and as a useful currency (“Utility Coin”) can be used to improve the liquidity in the Ripple network. The current Version of XRP is only since the year 2012. Ripple Labs has been created in the same year by Chris Larsen, who originally called it OpenCoin. The users did not promise that the currency will rise in value, or that users will have by the possession of XRP for a share of the company.
3. An Existing Framework does not exist
The government has simply currencies as yet no regulations for Crypto, and even this term is a broad one. The former Federal Reserve Chairman Janet Yellen explains to this topic:
“The Fed plays no regulatory role in relation to Bitcoin, except to ensure that the supervised Bank are supervisors aware that you manage your interactions with the participants in this market is appropriate, adequate anti-money laundering procedures and the responsibilities of the banking secrecy law of procedure, to comply with.”
4. FinCEN gave the green light
Ripple has been demonstrated for non-compliance with an appropriate anti-money laundering (AML) fines. The same report however, also the permission for XRP, so to continue, as the currency has operated on so far, as long as the registration and compliance with the guidelines of the FinCEN was made. Both parties hoped that the agreement would set an industry standard in the field of digital currencies.