• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Technical analysis XRP

Ripple Effect: What The XRP SEC Lawsuit Says To New Crypto Projects

Tony Spilotro by Tony Spilotro
4 weeks ago
in XRP
Reading Time: 3min read
Ripple Effect: What The XRP SEC Lawsuit Says To New Crypto Projects

a lawyer in his office showing a document with the text lawsuit written in it

Advertisement
Nexo Logo
Listen to Article

Last night, Ripple CEO Brad Garlinghouse revealed his company’s expectations that they would be slapped with a lawsuit from the United States Securities and Exchange Commission in relation to the XRP cryptocurrency token.

Word spread throughout the crypto community quickly, causing widespread speculation over what this could mean for the greater industry, Ripple executives, and other projects. Here’s what the alleged SEC lawsuit says to new crypto projects considering launching under the increased regulatory scrutiny that’s clearly coming.

Ripple CEO Reveals SEC’s Plan To Sue Company Over XRP Token Sales

When Bitcoin was created, its primary goal was to act as the first fully decentralized, non-sovereign digital currency. The concept worked so well in execution, an entire industry was birthed in its blockchain-based image.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Several other spinoffs like Litecoin were built, and new protocols were created that capitalized on the blockchain technology Bitcoin brought with it.

Ethereum and XRP were among the two early coins created that differ greatly from the first-ever cryptocurrency, giving each of them a unique use case and value proposition. It has allowed these tokens to become the top-ranked altcoins in the number two and number three spots in the top ten cryptocurrencies by market cap, respectively.

Related Reading | Ripple Network Activity Shows XRP Has Lost Its Spark Post-Airdrop

The use case and target audience isn’t the only way these assets differ, there’s also a large discrepancy in distribution and decentralization.

If an asset is sufficiently decentralized – for example, Bitcoin – it is considered a commodity and falls under CFTC jurisdiction. If a crypto project launches and a share of the tokens are held by founders and executives related to the cryptocurrency, then there’s a strong possibility that it could be deemed a security under the SEC’s Howey Test.

According to Brad Garlinghouse, Ripple CEO, the SEC is ready to slap the firm with a lawsuit related to selling unregistered securities: the company’s XRP token. The case, when it becomes public knowledge, will be a pivotal moment for the cryptocurrency industry, and it could shape how crypto projects launch in the future.

xrp ripple crypto sec

The altcoin will remain bullish despite the lawsuit if support can hold | Source: XRPUSD on TradingView.com

What Scrutiny Over The Altcoin Deemed Security Could Mean For Future Crypto Projects

When Ripple Labs first created XRP, there was next to zero guidance from any financial regulatory entity on how to go about it. Over time as the young industry has developed, we’ve learned how Bitcoin and Ethereum are considered commodities and the coins themselves are free from any SEC-related jurisdiction.

Moving forward, the outcome of this case and the fact that the lawsuit happens at all could forever change how crypto projects are launched.

What the $XRP lawsuit is saying to new projects:
1.) Company that starts a project cannot be the majority holder of the coin (Keep 👀s on projects with large pre-mines)
2.) Coins need to have a "fair launch".
3.) If your coins is POW and has no pre-mine it's not a security pic.twitter.com/7L6aINXU5i

— MeanHash ₿ ✪ (@MeanHash) December 22, 2020

Project founders, teams, and the companies themselves cannot be the primary holder of the coins issued. Initial distribution at launch must be fair to ensure the asset is well-decentralized.

Related Reading | SEC Bitcoin Blunder: Regulator Accuses John McAfee Of “Scalping”

Proof-of-work coins without a pre-mine, are largely expected to pass the securities sniff-test, and pass off as a commodity instead.

Sadly, the crypto industry has responded to the Ripple lawsuit with cheer rather than a challenge. How regulators handle even a case against a disliked company and demonized executive team, could have an impact on the rest of the space for years to come.

5/ We're "in this together" to draw lines of regulatory demarcation.

XRP as a "security" further hurts the U.S. businesses while global comps will continue to make these markets.

XRP as a security also means other assets will meet the same fate. At least Ripple has $ to fight.

— Ryan Bitcorn Selkis (@twobitidiot) December 22, 2020

It also again, appears to put American investors at an extreme disadvantage, as the SEC’s jurisdiction would only prevent US citizens from owning XRP, allowing the rest of the global population to gobble up share.

In the rare, off chance that banks use XRP someday, only US investors will be left behind due to an unregistered securities lawsuit being issued in 2020 in relation to a coin created in 2012. The regulatory entity had eight years of adoption to step in, and at this point, the impact could cause more harm than good.

Featured image from Deposit Photos, Charts from TradingView.com
Tags: altcoinbitcoinBrad GarlinghousecryptoethereumlawsuitsecxrpXRPBTCXRPUSDxrpusdt
TweetShare
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Tony Spilotro

Tony Spilotro

I'm Tony Spilotro. Behind the pseudonym, I'm a digital media executive and global remote work leader with a decade of content experience and excellent. Here, I explore my newfound passions pertaining to privacy, finance, economics, politics, cryptography, property rights, and other libertarian-esque views. I am a Bitcoin evangelist, maximalist, and educator whenever I can be, helping to spread its message of freedom from government control, monetary policy mismanagement, and passing the buck - literally – to future generations. My journey from a curious retail crypto investor to a serious Bitcoin advocate, trader, and technical analyst is an unusual one, but life-changing nonetheless and has become less about money and more about a long-overdue revolution. While a firm believer in the laws governing math and science, I am profoundly fascinated by the impact of astrology and astronomy including moon and solar cycles and planetary alignment and their ability to influence and potentially predict markets. It hasn't yet clicked for me as to how to put anything to use, but I consider it my current rabbit hole I can't yet dig out of. My perspective of growing up alongside the internet, the dot com era, the Great Recession, and roots in video games collecting coins and rare items caused Bitcoin to immediately make sense to me. Through all of these lenses, I seek to produce content that is educational and entertaining, and I thank you sincerely for taking the time to read what I have to say. Please follow me on Twitter and feel free to drop me a line if you would like to work together.

Related Posts

Ripple (XRP)

Charted: Ripple (XRP) Surges 15%, Why The Bulls Are Back In Control

13 hours ago
xrp ada salt crypto

XRP At Risk Of Falling Out Of Crypto Top Five For First Time Since 2013

1 day ago
Ripple (XRP)

Charted: Ripple (XRP) Dives Below $0.30, Why 100 SMA Is The Key

1 week ago
Ripple (XRP)

Charted: Ripple (XRP) Eyes Fresh Rally To $0.35, Dips Remain Supported

2 weeks ago
Ripple (XRP)

Charted: Ripple (XRP) Recovery Faces Hurdle, Why Dips Could Be Limited

2 weeks ago
xrp ripple sec altcoin season

Here’s Why Despite SEC Charges, XRP Will Soar Again Someday

3 weeks ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Changelly

Changelly

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

The Foundation for Economic Education Announces Two Major Gifts from Bitcoin.com Founder Roger Ver

January 19, 2021

AC Milan to Join Sports Crypto Movement With Launch of $ACM Fan Token

January 19, 2021

Institutional-grade Crypto Exchange AAX Reports Record Fiat-Crypto Purchases in 2021

January 19, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Gamble +
  • Play Games
  • BUY BITCOIN

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.