News that SEC is after XRP to declare it as security and sue Ripple

in #crytocurrency5 months ago

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The price of XRP has been falling down of late, today's chart shows a fall of 24%, and yesterday XRP had a fall of 17%.

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This comes at a time when Ripple is in news with the United States Securities and Exchange Commission (SEC) under the chairmanship of Jay Clayton is preparing to sue Ripplefor selling XRP crypto currency as unregistered securities.

Ripple team is firm on XRP being a cryptocurrency not security

Ripple’s CEO, Brad Garlinghouse is ready to fight back as he says that XRP is a cryptocurrency and not a security. Brad says that SEC is restricting American innovation with such a move to BTC and ETH cryptocurrencies which he has repeatedly said is centralised as these cryptos are likely to get controlled by Chinese with Chinese crypto currency mining pools having control of most of Bitcoin’s blockchain.

SEC’s non-clarification of it’s stance on XRP had investors keep off this crypto

Many argue that Ripple is a very centralised cryptocurrency, with at least half of XRP’s supply held by Ripple. Moreover, Ripple conducts sales of XRP tokens every quarter to stay profitable.

SEC has ruled that Bitcoin and Ethereum is decentralised and therefore is not a security, however, they were not delivering their verdict on XRP soon enough. This regulatory uncertainty has had many investors stay off XRP.

Brad questions the timing of this litigation as well, as the term of the current administration with Jay Clayton as chairman of SEC ends this year.

XRP would be delisted from exchanges if it’s declared to be a security

If XRP gets classified as a security, crypto exchanges would delist it and it would be under the strict control of the SEC which is unwelcomed by the XRP community.

XRP is a good crypto for exchanging value with cheap transaction costs and speed

True XRP is not decentralised like BTC or ETH, but it is certainly useful and needed. The transaction fee of transferring XRP is very cheap while also speedy. During times of high ETH transaction fees, the cost of transferring USDT from one exchange to another was high as USDT is a ERC20 token. However, there was a way to bypass this by converting USDT to XRP and transferring XRP to the recipient crypto exchange.