XRP, the native currency to the Ripple project and no doubt the United States Securities and Exchange Commission’s’ (SEC) worst enemy (after the Bitcoin ETF of course).
The problem with XRP is that within the US, a number of people are taking Ripple to court for dealing an unregistered security (XRP), but, nobody is able to define whether or not XRP is actually a security, therefore the SEC are left in limbo. They haven’t said XRP is a security, nor have they said that XRP is not a security. Nobody knows what to think. It’s all been very quiet lately.
Now we must remember that there are a lot of cryptocurrencies that the SEC hasn’t categorised as either a security or as not-a-security, yes, spokespeople have sort of covered this area but for the likes of Bitcoin and Ethereum, there is no official statement to categorise these, in exactly the same way there are no official statements being made about XRP. According to Ethereum World News:
“The XRP community has an interesting theory that the SEC never put into writing that Bitcoin (BTC) and Ethereum (ETH) are not securities. The officials at the authority simply verbalized their opinion. Therefore, they still have no rules to regulate cryptocurrencies and in that sense, completely clear XRP from any wrongdoing.”
An unnamed member of the XRP community is also alleged to have sent the following email to the SEC:
“It appears you may be referencing recent public statements made by certain SEC employees about cryptocurrency matters… As you may be aware, Director Hineman’s remarks [about Ethereum] included a disclaimer: The Securities and Exchange Commission disclaims responsibility for any private publication or statement of any SEC employee or Commissioner.”
Is this enough to get XRP off the hook?
Nope, probably not. Just because not everyone in the world has been categorised as either a criminal or a non-criminal, it doesn’t mean actual criminals aren’t criminals. Sadly, it doesn’t work like that, I think this is just an attempt to distract the SEC. With that in mind though, it is interesting to imagine a system where the SEC actually trawl through the markets and categorise each cryptocurrency. Indeed, it would solve volatility issues but on the flip side, it could cause conflict and tension.
As the court cases continue and as the SEC regain focus on XRP, we’ll find out the true outcome of all of this soon enough.