Will the SEC Ever Provide Regulatory Clarity for Ripple? The XRP security status has been an issue of discussion in the XRP community.
Ripple has tried to offer the SEC a regulatory framework they can follow when creating clear-cut laws about Ripple and other cryptocurrencies. In 2018, the chairperson of the SEC said that Bitcoin and Ethereum are not securities but they didn’t say anything about the XRP token.
Recently, Tom Emmer, a member of the United States House Financial Service Committee, talked about regulatory clarity in the cryptocurrency industry. In his words;
“So long as actors play by the rules of the road, they deserve the assurances that regulators will not continue to cause uncertainty and will, in fact, support innovation in America. The purpose of this Act is to clarify and codify that an asset sold pursuant to an investment contract, whether tangible or intangible (including an asset in digital form), that is not otherwise a security under the Act, does not become a security as a result of being sold or otherwise transferred pursuant to an investment contract.”
Ripple Community Prepares for Spark Token Launch except for Jed McCaleb
In other news, Flare Networks has recently announced that current and ex Ripple employees can participate in the upcoming Spark Token airdrop except for Jed McCaleb. Jed McCaleb, who is one of the co-founders of Ripple, left the company a while ago. He has a significant amount of XRP in his wallet which he receives as compensation from Ripple. However, McCaleb sells his tokens from time to time. Flare Networks has excluded his wallet from the airdrop due to his sale of XRP tokens in recent times. Part of their post was as follows;
“We are excluding Jed’s XRP from the distribution. We decided to exclude Jed as the consistent sales of XRP having a negative effect on the psychology of the market make it clear he is not an XRP supporter.”
Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.
- Ripple and Other Members of the XRP Community Are Eager for Regulatory Clarity
- Ripple Community Prepares for Spark Token Launch except for Jed McCaleb
Ripple has offered the global financial industry an advanced, low-cost, and instant platform for cross-border transactions. Since this is something the world needs desperately, why hasn’t the blockchain firm achieved through global adoption? For starters, Ripple’s technology wasn’t designed to stand alone.
It is meant to interact with the existing financial infrastructure. However, many of these financial institutions are not comfortable with Ripple because there is still a lot of regulatory uncertainty surrounding the company. The community is eager to get regulatory clarity from the United States SEC.
