• Advertise
  • Submit a Press Release
  • About Us
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Bitcoin News
No Result
View All Result
Breaking News: Bitfinex And Crypto Bank OrionX Forged Partnership To Broaden Presence In Latin America
XRP, cryptocurrency

XRP is a Security, According to US Cryptocurrency Exchanges

Davit Babayan by Davit Babayan
4 years ago
in Bitcoin, Cryptocurrency Market News, Ripple
Reading Time: 2 mins read

XRP is almost a security, according to a council created by US’s biggest cryptocurrency exchanges.

Crypto Ratings Council (CRC) awarded XRP a four on the scale of five – the highest value indicating that an asset is a security. It noted that Ripple, a San Francisco-based blockchain remittance company, sold XRP tokens or token interests before the existence of its utility. Moreover, Ripple marketed XRP, a move which suggested that the firm showcased the asset for its long-term investment opportunities.

Ripple, summarized CRC, used a securities-like language when it came to promoting XRP. Nevertheless, the asset’s development and usage remained decentralized. The council reminded:

“The score does not reflect a legal conclusion and is no indication of the qualitative value of an asset or suitability for investment or any other purpose.”

CRC, backed by regulated US cryptocurrency exchanges, including Circle, Coinbase, and Kraken, put XRP through the securities standards established by the Security and Exchange Commission (SEC), including its “Framework for Investment Contract of Digital Assets.” The council also tested Ripple’s native asset against the statements made by the SEC officials, eventually ruling out that it could be security.

Eviction

According to the Wall Street Journal, the US cryptocurrency exchanges want to understand which tokens they should or should not list on their trading platforms. The need has prompted them to unite in the form of CRC, a council which would study and categorize cryptocurrencies per their securities’ status. Exchanges admitted that they could go wrong with the ways they analyze cryptocurrencies. That said, firms that believe their token’s score is wrong could dispute with it.

“It’s our hope the SEC will view this as a positive step,” said Mary Beth Buchanan, the general counsel at Kraken, adding that their report shows “the SEC what each exchange is doing to come to a decision.”

Ripple, on the other hand, is fighting a legal battle with its investors who have accused the company of selling them “unregistered securities.” CEO Brad Garlinghouse, nevertheless, denied the accusations, stating that XRP exists outside Ripple, which has merely developed a technology that uses the asset for conducting cross-border payments.

The SEC may feel the opposite. The US regulator might want to know whether or not a third-party is driving investors’ expectation for a profitable return. That is what William Hinman, director of the corporate finance division at the SEC, said in a speech last year. For most of the XRP investors, Ripple would make banks and big financial firms use the asset. That is why they hold or speculate on XRP.

https://twitter.com/XrpCenter/status/1178646840184639494

Exchanges, on the other hand, are under a regulatory burden to only list assets that either decentralized or approved securities. That puts XRP in their list of evictable assets unless the SEC decides to call the asset a utility token.

Other Cryptocurrency Scores

Apart from XRP, CRC awarded higher securities’ score to EOS, Maker, Polymath, Stellar, Tezos, and others. On the other hand, the council gave Bitcoin, Dai, Litecoin, and Monero a one.

Tags: bitcoinxrp
Tweet123Share317ShareSend
Davit Babayan

Davit Babayan

Davit Babayan is an Armenia-based expat balancing the academic life of a software design engineer with the experiences of a financial technology journalist. He aspires to be a full-time columnist and wants to write a book that would be called, "A Homeless Who Found Bitcoin."

Related Posts

Ethereum staking

LSD Tokens Rally As Ethereum Staking Ramps Up, Here Are The Leaders

2 hours ago
Masternodes: The Driving Force Behind Blockchain Adoption

Masternodes: The Driving Force Behind Blockchain Adoption

2 hours ago
Lido Centralization Concerns on Ethereum

Lido Centralization Risks On Ethereum Raises Concerns: Will LDO Crash?

15 hours ago
Gate.io

Gate.io Faces Insolvency Issues Amid Multichain’s CEO Arrest: $130 Million Net Outflow In 24 Hours

16 hours ago
litecoin

Litecoin Attempts To Revitalize The Crypto Market With Bullish Breakout

17 hours ago
Ripple

Massive Token Unlock: Ripple Releases One Billion XRP From Escrow

20 hours ago

Premium Partners

Play Finance

Now Trending

  • Potential 20x+ Crypto Presales 2023

    2 days ago
  • Willing to buy new crypto: Here are the best 10...

    2 days ago
  • Best Crypto Meme Coin Presales in 2023

    2 days ago

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

  • $WSM Hype Peaks as the Presale Blasts Past $1.5 Million in...

    1 hour ago
  • Dogecoin Volatility Set to Erupt: Wall Street Memes and...

    2 hours ago
  • XRP to hit 5$ Dogecoin chart suggests volatility Tradecurve...

    2 hours ago
  • 5 Reasons Why SCORP Could Set the Next Crypto Trend After...

    3 hours ago
  • Stacks (STX) and Dogecoin (DOGE) Whales Add Sparklo (SPRK)...

    3 hours ago

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.

Cryptocurrency news

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

Technical Analysis

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

Company

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

© 2023 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Claim 7 BTC

© 2023 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.