Ripple (XRP): Currency or a Security? What Team Ripple Has to Say about XRP

Ripple has made it to the main point of interest of SEC once the Securities and Exchange Commission confirmed that neither Ethereum or Bitcoin are securities, that way ruling out the possibility of BTC and ETH being viewed upon as stock or share values. Now that BTC and ETH are proclaimed to be currencies, Ripple is still to have its destiny decided by having SEC ruling on the matter revolving around the question: is XRP a security or a currency?

Ripple’s XRP: Currency or a Security?

The team behind Ripple has stated several times that they don’t look upon Ripple as a currency, but more of a digital asset, so for some members of the crypto community this statement confirms the origin of XRP and Ripple.

However, the members who agree on the matter that Ripple stands for more a security than currency, predicting that XRP will be marked as a security, could be reminded of the fact that the team Ripple had also stated numerous times and on different occasions that although Ripple and XRP are related in many ways, Ripple exists outside XRP and XRP can that way exist without Ripple.

Brad Garlinghouse, the CEO of Ripple Foundation stated not so long ago that it is a respectfully a fact that XRP is a currency while having a value in the market that is in no way manipulated by Ripple foundation, Garlinghouse reminded the public that XRP is not owned by Ripple.   

Having that said, Garlinghouse added that even if Ripple foundation wouldn’t exist anymore, XRP would continue to rise and fall with the market currents, still being available as a currency.

For Garlinghouse, this is a definite proof that XRP is not a security, whichever decision would follow by the SEC.

Richard Holland Reminds the Public: FinCEN Agreed XRP is Not a Security

One of the less known members from the Ripple team, Richard Holland, who actually designed the open-source wallet for XRP holders, joined the debate on the matter of whether XRP should be marked as currency or a security.

Holland tweeted in reply to having the latest rumors stating XRP to be a security by reminding the public that it was the US Financial Crimes Enforcement Network that ruled out the possibility of XRP being a security as the FinCEN clearly stated in their agreement that XRP is marked as currency.

Holland backed up his statement by sharing a definition of a security, as well as sharing a screenshot from the initial statement of facts and violation, within the chapter of background and introduction.

Holland said that the US Government has already stated their view on the case of XRP through the agreement between Ripple and FinCEN, that way claiming and officially concluding that XRP is a currency.

“An asset cannot be both a security and currency”, Holland claims.

In the document it is clearly stated that the “currency” of XRP was pre-mined and “completely generated”  before being distributed to the public, therefore closing his defense on the matter stating that the attached document is a part of the agreement between FinCEN and XRP.

The History Between Ripple and FinCEN

The story started out as a civil enforcement on the behalf of FinCEN almost three years ago, back in 2015.

Holland, alongside with the rest of the Ripple team claims that XRP is not a security, but some community members beg to differ while waiting for the decision from the SEC that will have the final word on this matter.

Back in 2015, FinCEN had XRP accused of several violations, which included Ripple foundation paying a fee of 450.000 of the US dollars, while creating an agreement between FinCEN and the state of XRP.

The violations of which XRP was accused held this currency for not having been integrated an AML system into their network, as well as for operating as money services business without having been previously registered with FinCEN.

The agreement was settled and the case ended with XRP paying the fine alongside with signing the agreement where XRP is said to be a currency.

Although this matter was over with for three years already, Holland has attributed this case to be the main key to resolving the question of whether XRP is currency or a security, stating that SEC won’t be able to make a different decision in oppose to the one brought by FinCEN in 2015, believing that XRP is already officially marked as currency.

Although the claims are true and backed up with solid evidence, Holland, Garlinghouse, and the rest of the crypto community will have to wait patiently for the SEC’s final word on XRP’s nature.

Ripple (XRP) Performance

Although the situation in the public may seem a bit tense, XRP is doing pretty well in the market while it is following the latest market trend.

With that being said, XRP is going up by timid 0.29% while trying to bounce off with the current dealing price of 0.53$ at the time of this writing.

For the latest cryptocurrency news, join our Telegram!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Pexels