According to some cryptocurrencies market experts, Ripple and its XRP (XRP) crypto are going to receive a “big hit” from the SEC’s verdict which is more likely to declare XRP as security. However, as the same analysts state, Ripple can cope with that adverse decision.
According to an earlier statement from SEC, both Bitcoin (BTC) and Ethereum (ETH) are not securities, but XRP (XRP) is different. Therefore, it could be declared security. In fact, the XRP token, dubbed by Ripple as an “independent digital asset” is troublesome for the authorities.
In fact, Ripple, the renowned FinTech company, still owns around 60 billion XRP out of the total of 100 billion XRP. For this reason, many lawsuits involving XRP (XRP) emerged across the United States declaring the token as a “never-ending ICO” meant to raise millions of US Dollars for Ripple company, despite the fact the crypto-coin emerged out of thin air.
Ripple and its XRP (XRP) to take a big hit from SEC – Can Ripple cope if XRP is declared a security?
“We absolutely are not a security. We don’t meet the standards for what a security is based on the history of court law,” stated Ripple’s Cory Johnson, in April. Also, Ripple CEO Brad Garlinghouse stated last month that, according to him, “it’s really clear that XRP (XRP) is not a security,” because it “exists independent of Ripple.”
Now, according to some cryptocurrencies markets experts, if the US SEC declares that XRP (XRP) is a security, the crypto token, as well as Ripple, will take a “big hit” because it is listed on many major cryptocurrency exchange platforms, and such a lousy news would trigger a very adverse reaction from the cryptocurrency traders and investors towards XRP.
However, the same experts believe Ripple can cope with the declaration of the XRP (XRP) as a security because its currently-installed platforms for fast and secure cross-border payments, such as xCurrent, don’t use XRP to perform their operations.