The securities question due to Ripples XRP is developing rather slowly and has still not been resolved. The community is eager to know if Ripple is actually classified as a security or not. As the situation around Ethereum and Bitcoin is clear, one can only hope that more information about Ripple will be available in the next days and weeks.
The XRP situation remains unclear
There are some features of Ripple’s XRP that worry investors and regulators. However, this does not automatically mean that it can be described by the SEC as a security. It looks as if an official “investigation” is under way.
According to William Hinman of the SEC, the classification of XRP is not easy. A security is usually an investment vehicle for which buyers have specific expectations. If the buyer expects an increase in value of the coin, this can primarily be regarded as a security. However, this concept would apply to all crypto currencies, assets and tokens currently on the market.
At Bitcoin, there is no central authority that determines the future of the project. Ethereum is also “similarly” decentralised. However, Ripple’s XRP is controlled from a central location in many ways. Although this situation will change, it remains a very centralized project on the surface.
Nathaniel Popper switches to Bitcoin Code
The definition between centralized and decentralized has become more difficult. Even for crypto currency enthusiasts there Bitcoin Coin review is currently fake. Until the SEC has clarified its position on XRP, this uncertain situation remains.
The SEC comments this morning seem to have been worded to strongly suggest, without saying it outright, that Ripple’s cryptocurrency, XRP should be categorized as a security. Do lawyers out there disagree? And why not just come out and answer this lingering question?
Nathaniel Popper, a respected author and crypto advocate, shared his views this week. In his opinion, XRP can very well be classified as a security. He does not seem to favour either of the two results at this point, but above all wants to spark additional debates.
Nevertheless, the community seems to disagree. There is also the question of how much impact a security status has on XRP. Of course, this will affect the ranks of investors and thus the Ripple share price and somewhat restrict the infrastructure. We’d like to know what you think of Ripple’s status.