Chartist wants SEC to Declare Ripple (XRP) a Security
Peter Brandt, a chartist, controversially shared a tweetsaying if the United States Securities Exchange Commission (SEC) understood cryptocurrencies it would have declared Ripple (XRP) a security. The third most valuable coin is issued by Ripple Labs and widely traded even though a section of investors are wary of the regulator categorizing the asset as a security compliant with Howey Test criteria, requiring holders to file with the agency.
Unlike BTC and ETH, regulators and policymakers in the United States are mum on the status of XRP despite its capitalization. The failure to guide the coin hurts investors. Made worse by court cases, Ripple executives including Brad Garlinghouse have taken to various media to voice their position on XRP categorically stating that the coin is not a security but a utility enabling cheap and fast transfer of value. Ripple, the for-profit company valued at over $10 billion different from Ripple Labs--the official issuers of XRP, also has a decentralization strategy in place and have paused the direct sale of XRP to On-Demand Liquidity (ODL) partners
Impact on the XRP Price:
Bearish. Until after the SEC directly comments on the coin, buyers have the upper hand. However, it must be noted that investors don’t like uncertainty and this state of limbo is negative on prices.
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