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- Ripple, the San Francisco-based fintech company, has been embroiled in a legal battle with the US Securities and Exchange Commission (SEC) over the classification of its cryptocurrency, XRP.
- However, a recent report suggests that Ripple has forced the SEC to admit that XRP is merely a software code and not an unregistered security.
What does the report say ?
XRP is a digital asset that serves as a bridge currency in Ripple’s payment protocol. It was launched in 2012 and has been in circulation ever since. However, in December 2020, the SEC filed a lawsuit against Ripple, alleging that the company had raised $1.3 billion through an unregistered securities offering by selling XRP to investors.
The lawsuit sent shockwaves through the cryptocurrency community, with many speculating that the SEC’s decision could have a profound impact on the industry as a whole. Ripple has vigorously defended itself against the allegations, arguing that XRP is not a security but rather a currency that is used to facilitate international payments.
Ripple has also accused the SEC of inconsistency in its treatment of cryptocurrencies. The company points out that the SEC has previously stated that both Bitcoin and Ethereum are not securities, yet it has taken a different view of XRP. Ripple argues that this inconsistency has caused significant harm to its business, with many exchanges delisting XRP and investors losing confidence in the company.
However, a recent report by Ripple suggests that the company may have gained an important victory in its legal battle with the SEC. The report claims that Ripple has forced the SEC to admit that XRP is merely a software code and not an unregistered security.
The report refers to a letter sent by the SEC to Judge Sarah Netburn, who is overseeing the case. In the letter, the SEC argues that the discovery of Ripple’s internal documents would not be relevant to the case. The SEC states that it is not seeking to establish whether XRP is a security or not, but rather to determine whether Ripple violated securities laws by selling XRP to investors without registering it as a security.
However, the report suggests that the SEC’s admission that XRP is merely a software code could be significant for Ripple’s defense. The company has long argued that XRP is not a security but rather a digital asset that is used to facilitate international payments. If the SEC now agrees that XRP is merely a software code, then Ripple’s argument may carry more weight in court.
The report has been welcomed by the cryptocurrency community, with many believing that it could be a significant step forward for the industry as a whole. If XRP is deemed to be a currency rather than a security, then it could pave the way for other cryptocurrencies to be similarly classified.
However, it is important to note that the legal battle between Ripple and the SEC is far from over. The case is currently in the discovery phase, with both sides gathering evidence and preparing their arguments. The ultimate outcome of the case is still unclear, and it could be some time before a final decision is reached.
Conclusion
In conclusion, the recent report suggesting that Ripple has forced the SEC to admit that XRP is merely a software code and not an unregistered security is a significant development in the ongoing legal battle between the two parties. However, it remains to be seen how this will impact the final outcome of the case. For now, the cryptocurrency industry will be watching closely to see how the case progresses and what impact it could have on the industry as a whole.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
