Can the regulatory situation of XRP ever be resolved?
Veteran trader and charts analyst, Peter Brandt, is the latest figure in the cryptomoney community to dispute the regulatory status of XRP.
According to him, XRP is a security, which means that the currency should be under the regulatory scope of the US Securities and Exchange Commission.
Ripple Hit with Another Lawsuit Alleging XRP Securities Law Violations
„XRP would have been declared a security if the SEC understood crypts,“ Brandt argued in a tweet on 10 November.
Brandt’s comments came in response to a statement by Twitter user Rexiby crypto, who said that „XRP owns almost half of all coins in circulation. According to Brandt, XRP is a „classic case of a market manipulated by a bag-holder“.
Brandt’s comments could apparently be linked to a market report for the third quarter of 2020 from Ripple, one of the most important companies affiliated to XRP. Published on 5 November, the report states that Ripple was actively buying XRP, spending nearly $46 million in currency during the third quarter of 2020. Company executives emphasized that Ripple „is buying – and can continue to buy – XRP to support healthy markets.
Proceeds demand that Ripple’s XRP is an unrecorded value
While Ripple strives to distinguish itself from XRP, the company still owns a significant amount of the currency. According to official records, Ripple owned XRP 60 billion, with 55 billion in escrow accounts as of July 2018. The company is reported to own more than half of the total supply of XRP.
The long-standing regulatory uncertainty surrounding XRP has triggered multiple lawsuits, claiming that XRP is an unregistered security. Although first mentioned in 2018, the SEC has not provided a firm position on this issue to date.
Ripple itself is looking to move abroad because US regulations apparently threaten its business. In late October, the CEO of Ripple’s sponsor and a major technology partner, SBI Holdings, said that Japan is the country to which Ripple is most likely to move if it leaves the US.
In August 2020, US representative Tom Emmer (R-MN) argued that XRP is not a value, but provided little information.
Translated with www.DeepL.com/Translator (free version)