what happens if xrp is a commodity

XRP has been the centre of a legal battle in which the US Securities and Exchange Commission (SEC) slapped Ripple with a lawsuit, alleging that XRP is a security. The SEC lawsuit led several popular exchanges to drop XRP, and it has also received criticism in the crypto community because a private company is in charge of it. things might go south for XRP. $100+ 02 Mar 2023 03:01:07 Elsewhere, he views the outcome as a fundamental setting, an important precedent applicable to other cryptocurrencies, such as Bitcoin, especially by leading financial institutions. A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. (Video) Crypto Security Tips: How to Never Get Hacked! Securities refer to tradable financial assets, such as ETFs, shares, stocks, bonds, hedge fund investments, options, and futures. Answer (1 of 3): What does the future hold? Ripple has been working with financial institutions and other companies to try and get them to use its network and currency. Ripple's XRP token is a risky play, and that's even in relation to other cryptocurrencies and cryptocurrency stocks. For Ripples flagship service, RippleNet, XRP is used as on-demand liquidity. David Reischer told Finbold that other nations regulators have ruled that crypto cannot be regarded as a security if there is no issuer. If it was deemed a security, how would it be distributed besides issuance of stock? In other words, XRP is not a security because it does not meet the definition of a security term, as does most other cryptocurrencies. Ripple will have . The XRPL uses a consensus protocol, which means that servers assigned to a transaction agree on the order and outcome in 3-5 seconds. Thats all its about, the escrow. Dont miss out on Filecoin (FIL), The What is the Universal Basic AssetUBA Finance. Investors Believe it is Collateral Network (COLT), Bitcoin (BTC) Tests $25K Level, Orbeon Protocol (ORBN) Pushes Higher, While Filecoin (FIL) Sees Renewed Support. This could, in turn, set a legal precedent that results in similar cryptos being classified as securities as well. The cryptocurrency fell over 17% Tuesday, to trade around 46 cents. Yesterday the newly formed Crypto Rating Council (CRC) released its first batch of 20 digital asset ratings. The XRP price is $0.38, a change of -0.52% over the past 24 hours as of 8:06 p.m. Currently, it is estimated that $10 trillion are processed each day across the world. Bitcoin is one of the most secure cryptocurrencies, with a hash rate that climbed to an all-time high in January 2022. According to Coinbase, the SEC is currently collaborating with the company to bring XRP trading back to its platform. XRP being deemed an unregistered security does not magically transform it into Ripple stock shares. The most famous example is Dogecoin. According to another XRP twitter proponent, Jungle Inc, he believes the asset could rise as high as $692 per coin based on the expectation that all international payments in the future will use XRP. The SEC is still working on developing its regulatory framework for digital assets. 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When some shareholders happen to also stake for validation using the shares and thus receive an . In other words, XRP is being tokenized. WARNING: The content on this site should not be considered investment advice. A drop in XRPs value as a result of its removal from most centralized exchanges may have an impact on it. Investors in XRP are interested in knowing what the future holds for the cryptocurrency now ranked sixth by market capitalization, with the ongoing legal dispute between Ripple and the Securities and Exchange Commission (SEC), one of the most important aspects that might have a significant effect on its success. For now, there is no official announcement on the courts position. Ripple secured a big win in its lawsuit against the SEC this week, legal analysts said. Many cryptocurrencies are decentralized networks based on blockchain technologya distributed ledger enforced by a disparate network of computers. This means that if you have XRP in your account on that exchange, you will no longer be able to trade it. The current CoinMarketCap ranking is #6, with a live market cap of $20,295,207,151 USD. Legendary interview, listen to Ross, he knows exactly what will happen! When investing your capital is at risk. So when you talk about, okay, XRPs a security, I go back to something I said years ago when they started: A security of what company? Now, I dont think hes so crazy anymore.. xNEO ? XRP transactions typically take about three seconds, which is shorter than the time it takes to send fiat currencies. There is already Ripple shares on Linqto available for accredited investors. Realistically, if XRP is considered to be a commodity by the US courts sometime in the near future, then it is likely that well see the price retest last years high of $0.50 before potentially breaking towards $1 if FOMO traders pile into the rally. However, XRP and the underlying XRP Ledger were designed in 2011 and 2012 specifically as a payment mechanism by software developers who later founded Ripple Labs (Ripple). The coin itself is not backed by gold. ETH like XRP is alphanumeric code. SEC lawsuit claims that XRP is known as a security in the cryptocurrency market and is not a cryptocurrency. Regulating cryptocurrencies as securities would be problematic because there's no one to comply with the rules usually imposed on issuers. That is, they cannot be easily bought or sold on demand as no exchange exists for trading them. Bottom Line. The Securities and Exchange Commission announced today that it has filed an action against Ripple Labs Inc. and two of its executives, who are also significant security holders, alleging that they raised over $1.3 billion through an unregistered, ongoing digital asset securities offering. We also have others backed by fiats like US Dollar including Tether, USD Coin, Dai, TrueUSD, Paxos Standard, Binance USD, Gemini Dollar, and Palladium Coin. Many cryptocurrencies are decentralized networks based on blockchain technologya distributed ledger enforced by a disparate network of computers. Invest Cuffs 2023 - one of the largest investment congresses in Europe! Some powerful people dont like xrp so they got their government lap dogs to create problems. By continuing to use this website you are giving consent to cookies being used. Others are expectant that XRP price could break even further beyond that. The USA government is contradicting itself. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Elon Musk owns only three cryptocurrencies, and one of them is Dogecoin - Protocol. The lawsuit has continued for three years, with both parties submitting final filings and waiting for a decision. From this lawsuit I see few outcomes. Stay updated on all the news concerning cryptocurrencies and the whole world of the blockchain. An important part of settling whether XRP is a currency or a security may involve something called the Howey test, which was created by a 1946 Supreme Court case. Who is the owner? I think its very clear there is no investment contract If you get past the investment contract, which I think is hard, across the Howey Test, you have to meet all three prongs, and in the case of the XRP case, you cant meet all three prongs for sure. But one of the problems is the status of the actual asset. According to the SEC, Ripples platform, which allows retailers to transfer funds between vendors, made XRP a security. Yes. No. This website is free for you to use but we may receive commission from the companies we feature on this site. Please note that attempting to make any ripple price predictions for 2030-2050 is a challenging task due to the many unknowns of the future. The company is trying to defend itself from a class action lawsuit by early investors, who claim to have been offered XRP with promises of future gains. It has a circulating supply of 50,799,084,881 XRP coins and a max. 6 However, once the SEC filed suit in December 2020, crypto. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. Do the math and it's a 100% chance that it's one of those two. November 20, 2021 4:00 am UTC, Rick Steves. That could lead to even higher XRP prices. XRP can be used in the same way that any other digital currency is, whether for purchasing goods or investing in the future. Finbold is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. The Road to Toppling Bitcoin But what would happen to XRP price if the US court recognized the asset as a commodity and put an end to the ongoing lawsuit? Although the lawsuit is still pending, Bitbuy believes the delisting is in the best interests of the company. What is the biggest northern pike ever caught in the United States? If you dislike XRP, its 100% a security and anyone who disagrees is a moron. Stablecoins: according to Reuters, the winner is Tether, AGIX: the crypto of the moment. Ripple, Inc. now awaits the decision on an order to dismiss the claims, which would translate into a court order stating that Ripple did not mislead its investors into buying a security. Brian Armstrong, CEO of Coinbase, stated that the irony was that those they were supposed to be protecting were the ones who were attacking them. Schwartz then explained why he believes that XRP is a commodity: XRP is a raw good that trades in commerce and one XRP is treated as equivalent to every other XRP. Ripple Labs won a major victory in the XRP (CRYPTO:XRP) pre-trial hearings last week. Central banks can use a variety of secure, controlled, and flexible solutions to manage digital currencies. During 2022, characterized by a crypto winter, SEC Chairman Gary Gensler also seems to have issued his own opinions on crypto classification, which have not yet been made official. Back in July 2021, Tesla CEO Elon Musk confirmed publicly during a conference that he owns a few cryptocurrencies, such as Bitcoin, Ethereum and Dogecoin, but he has repeatedly favoured the latter in interviews and posts on social media. On Friday (20 January 2023),David Schwartz, who is Ripples Chief Cryptographer and Chief Technology Officer (CTO),explained why XRP is a commodity. According to the attorney based in Florida, the result of the lawsuit between Ripple and the SEC is being eagerly awaited across the sector, with Pickett highlighting that: If Ripple is successful in their lawsuit, it could help solidify XRPs legality in the US market, which would benefit its price.. To put things simply, Canada regulates cryptocurrency as a security. Reischer notes a favorable conclusion would be beneficial to the entire crypto industry because it is necessary to offer clarity and confidence for the entire industry. #xrpthestandard "It's up in the air [to be . However, Cardano did something that was legally very smart. Penny Crosman. Ripple is prohibited from selling any more XRP. The result is that XRP remains decentralized and is faster and more reliable than many of its competitors. And so we think that the judge will see that the law is very clear, we think the facts are very clear, we think this is just a gross overreach of the SEC trying to wrest control of that uncertainty that has existed I think the Ripple Test may be what we look at in the future. Retailers, Collateral Network (COLT) Is A Hidden Crypto Gem, Along With Quant (QNT) and Litecoin (LTC), Flow (FLOW) and Polygon (MATIC) Left Behind As Orbeon Protocol (ORBN) Emerges As Top Token, Whats the Next Crypto to Explode in 2023? XRP is a cryptocurrency that was created by Ripple. Nope Also while writing this I just learnt that Xrp and their token arent the same thing, Xrp have pretty much banked their token with Ripple. In response, the SECs case is reduced to a circumstantial rather than fact-based one. The current class-action suit accuses the blockchain company of misleading investors and selling them XRP in violation of U.S. federal law. Data provided by TradingView shows that Bitcoin (BTC) saw an intraday price swing of 4%, climbing from a low of $23,248 in the early hours to hit a daily high of $24,178 near midday before pulling back to support at $23,700. Coinbase will cease to trade XRP on January 31, according to a statement. Ripple connects banks, payment providers and digital asset exchanges via RippleNet to provide one frictionless experience to send money globally. The outcome of the lawsuit, as well as its effects on Ripple and XRP, will have a significant impact on the future. Although the allegations against Ripple Labs may be true, the news that the company is joining the Linux Foundation is a huge deal. Tokens like #XRP, #ETH, #ALGO, #ADA, #XLM, etc., traded for 5-10 years should be treated as commodities, not securities. And it is most likely that smaller currencies will fall under the security label. . In order to comply with the SEC, American crypto exchanges are not allowed to trade securities. It will face fines and other penalties if Ripple Labs Inc. is found guilty of any crime. XRP, Ripples native utility token, has been stuck under $0.25 for a number of months now, as traders wait for bullish news to arrive. The company is trying to defend itself from a class action lawsuit by early investors, who claim to have been offered XRP with promises of future gains. I am speculating here of course. First, on the most literal level, the category of asset it belongs to is not included in the definition. It was issued via ICO, there was premine, (Video) Owning Security Tokens Is Easier Than Crypto. Ripple, which has long insisted it did not create and does not control XRP, did not respond to a request for . #xrpthestandard, The tool for the financial industry pic.twitter.com/w5nnHQLtWM, JackTheRippler??? Ethereums transition to PoS in September is a dangerous bet on decentralisation that could attract the eyes of regulators. We use cookies to make sure you can have the best experience on our site. The XRP Ledger consumes 61,000 times less energy than a proof-of-work blockchain. Is the US dollar considered a security? What is it called when a prisoner goes back to jail? ETH like XRP is alphanumeric code. All . Source: TradingView. The issue over crypto classification starts with the never-ending Ripple-SEC lawsuit, which saw the Securities and Exchange Commission accuse Ripple Labs and its executives of selling $1.3 billion of XRP in an unregistered security offering. Payment providers and digital asset ratings the rules usually imposed on issuers allowed to around. 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