what will happen if xrp is not a security

This is because the sale and trade of the XRP will now be subject to . The discussion as to whether Ripple (XRP) is a security or not has been looming over the minds of all crypto-traders and investors for a few months now. It's open-source, decentralized technology that exists independent of. Ripple is considering migrating its headquarters to the United Kingdom, citing regulatory clarity on the digital asset XRP. There is lot of room for XRP to grow and they are going to grow beyond all the challenges. Part 3: What Happens if XRP is Deemed a Security? If XRP is deemed a security (which it wont), then there will be the Ripple securities and XRP as securities for Ripple. The agency argues that XRP, the native digital currency used by Ripple and other companies on an open sourced, decentralized ledger, has been an unregistered security since it was introduced in . Ripple has maintained XRP is not a security but its latest arguments relate only indirectly to the substance of the case. Asheesh Birla, confirmed that 20% RippleNet transactions happens through the XRP digital asset. To retail investors this is not a deterrent. Example in the UK its an exchange token just like BTC ETH etc On July 31st, the FCA published its final guidance defining which crypto asset activities it regulates. XRP/USD should technically attempt to break above the Flag's upper trendline to continue its uptrend. The cryptocurrency being found as a security could, as fintech upstart Ripple put it, "upend and threaten to destroy the established XRP market more broadly." Despite these concerns, a lawyer with good . With regard to whether Ripple would ever move from the US, the CEO maintained Ripple was a "proud US company." For a while now, Ripple has drawn much speculation after Garlinghouse revealed that he was considering moving Ripple's headquarters to London, over the . — xNEO (@XRP_Anderson) February 25, 2019. Answer: It isnt a security in every country that has regulated it so far…. It recovered . As a broker offering CFD trading we can say that it doesn't really matter to us if XRP is a security or not. The project assessed that XRP more closely resembles a security than a non-security, giving the asset a score of 4 out of 5 (5 being a clear security). Confusion over XRP's status as security or commodity has also hindered some U.S. platforms from listing the token on their trading catalog. The quotes of the XRP token futures with an expiration date in March 2021 reached a value of 0.00000001 BTC (the contract is being traded to bitcoin). It exists independently of Ripple the company. "Whether or not XRP is a security shall not be dictated by one lawsuit. Evidence suggests XRP is a security. The XRP price is forecasted to reach $1.2008880 by the beginning of December 2021. XRP holders already know it's not a security, so their position is already priced in. Anybody who's buying and selling XRP in the United States would have to get a broker-dealer license." The head of the San Francisco startup has publicly discussed the possibility of the firm moving to friendlier regulatory jurisdictions, or at the least, regions . "In my prior statements, I said I don't think XRP is a security, and I think in its current form, its current use and the level of decentralization the ecosystem has, that that's . Whether or not XRP is a security or not isn't going to be dictated by one lawsuit." Garlinghouse goes on to justify this by saying XRP is entirely independent of the company. He believes that XRP is not a security, and that its status should be recognised legally. I'm not aware of any market globally that thinks that XRP is a security. US Congressman Tom Emmer recently voiced his opinion regarding the regulatory status of XRP. An accompanying press release from the FCA lists XRP al. The paper explains why XRP is not a security. When we think about the ongoing legal battle between the SEC and Ripple, the two parties have gone back and forth on why XRP is a security and not (according to Ripple Labs). The SEC is the governor of that. Garlinghouse added that the United States suffers from a lack of regulatory clarity and says that the SEC has "has sat back and watched for years." Ripple contests that XRP is a currency, not a security, and compares the ruling that XRP is a security as being 'akin to viewing oil as a security controlled by Exxon' . It exists independently of Ripple the company. The resulting reduction in liquidity will cause XRP's value to decline," Grundfest wrote. Therefore, token holders are not dependent on Ripple, or that that matter, any party, for speculative profiteering. So most likely they will argue that in court and probably end up deeming XRP as not a security in the end anyway. For XRP, ever since Ryan Coffey filed the first lawsuit against Ripple back in May 2018 claiming XRP was a security, a cloud of uncertainty has been looming over the digital asset. The SEC is the governor of that. I believe this will have zero impact on the price (I could certainly be wrong). Regulatory clarity, or rather the absence of it, if one of the main hurdles for adoption. The 93 pages long document cites four main arguments on why XRP is not a security and why the SEC has made a mistake. My Crypto Picks and Trades: 50% OFF Trezor Hardware Wallet -. Even if XRP is a security in the US, Ripple will thrive. Should such a move happen, then the pair could grow by as much as the height of the flagpole that formed before the Flag itself. The SEC's complaint also mentions a legal memo that determined XRP could be deemed a security: "…This demonstrates why you never pay for a legal memo that doesn't say what you want it to . Answer (1 of 7): Late answer here, but so much tribalistic rubbish in these responses I thought I'd throw my hat in. The beginning of 2021 was supposed to be a continuation of the growth in the value of XRP, but this could not happen due to the SEC's announcement of a lawsuit. In 2018, a few XRP investors filed a lawsuit against Ripple. The SEC has yet to give direction with respect to the remittance coin in a manner similar to how it stated Ethereum (ETH) was not a security.This statement by the SEC about ETH even prompted the early listing of Ethereum Classic (ETC) on Coinbase. Unfazed by whether XRP is a security. In its maiden crypto ratings, the CRC, XRP obtained was deemed as most likely a security. The value of the token reached $0.8 before the end of the year. Ripple CEO Reveals What Will Happen if SEC Wins Lawsuit. Ripple has been fighting the case that this digital asset is not in any form resembling a security, and should exist outside the scope of the Securities and Exchange Commission. If Ripple, the company shut down tomorrow, XRP will continue to exist. He stated, "If XRP is found to be a security, the SEC would say that . Ripple and XRP are separate things , but they are constantly confused and conflated by cryptocurrency speculators and by the media—it doesn't help matters that Ripple owns 60% of the supply . For most companies, whether they will continue to list or associate themselves with XRP depend fully on the outcome of the SEC lawsuit. The price of XRP reached its highest point in three years earlier this week when it passed $0.75 on Monday, April 5th. At this point in XRP's eight-year history, Hoskinson says he does not believe it is a security, although its status may have been different in its early days. The scores are not meant to serve as legal . In 2018, David Schwartz, Ripple's CTO, admitted that the firm's main source of revenue is the sale of XRP and that these funds are used to increase the value of Ripple. According to Ripple, XRP represents a virtual currency that comes without an investment contract and is outside of the SEC's . Right now however, owning XRP is a potential risk, as the asset may still be viewed as an unregistered security. Following the same, reactions were quick to come from all corners of the crypto-community, with Ripple CEO Brad Garlinghouse calling the lawsuit 'illogical,' claiming that XRP should not be classified as a functional equivalent of a .

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