Here’s Why The XRP Securities Suit Is Worse Than Past SEC Charges

2020-12-25 02:00

In what has had an enormous ripple effect across the crypto industry, the SEC has filed a lawsuit that deems the XRP cryptocurrency token to be an unregistered security. Those on the defensive look to past instances of EOS and KIN as examples of tokens launched that barely got a slap on the wrist, paid a fine, and went on their merry ways.

However, one crypto analyst with a strong understanding of law explains exactly why this Ripple lawsuit is especially bad, and why XRP investors in the US are right to be worried.

Ripple Lawsuit: SEC Fires Shot Heard Round The Crypto Industry

This week, Ripple CEO first broke the news to the media that he was expecting a lawsuit from the United States Securities and Exchange Commission.

The crypto market took pause to digest the new information and consider the potential impact of what was to come, and then XRP plummeted once investors came to grips with the severity.

Related Reading | Ripple Lawsuit Triggers XRP Led Altcoin Apocalypse

Retail investors panic sold, and even large hedge funds based in the US have now liquidated their holdings to stay compliant with US law. The expectation is that major exchanges like Coinbase will delist the altcoin next.

It immediately caused the cryptocurrency to fall in overall market cap, bleeding billions in hours. And while the “XRP army,” analysts, and supporters came out in droves with reasons why Ripple will be fine and so will their favorite centralized cryptocurrency, there is serious risk in this situation compared to others.

A look at the aftermath of the SEC lawsuit. However, support is still holding... | Source: XRPUSD on TradingView.com

 

Why The XRP Suit Doesn’t Compare To EOS Or KIN Cases

XRP supporters holding on to what they still can, might find comfort in knowing that the companies behind EOS and KIN tokens were able to successfully settle with the SEC, pay their fines, and move on.

Adam Cochran professional analyst and partner at Cinneamhain Ventures breaks down why the Ripple case is different.

First, the SEC asserts that XRP today is still an unregistered security, while EOS and KIN tokens were only at the time of sale. They also have documentation of centralization, which is what the crypto community often disliked most about XRP.

Related Reading | Ripple Effect: What The XRP SEC Lawsuit Says To New Crypto Projects

Ripple execs Brad Garlinghouse and Chris Larsen are explicitly named in the case as liable. Cochran also says that exchanges will need to delist XRP immediately or risk being in violation of securities laws themselves. The SEC has issued a statement offering clarity around the situation, but others have added that although some leniency is being given to exchanges that have offered the token to customers thus far, it doesn’t give them the freedom to keep doing so now that XRP has been deemed a security.

Lastly, the case could drag out for years, causing XRP to suffer significantly as a result.

Featured image from Deposit Photos, Charts from TradingView.com origin »

Ripple (XRP) на Currencies.ru

$ 2.0727 (-2.02%)
Объем 24H $5.776b
Изменеия 24h: -0.52 %, 7d: -11.10 %
Cегодня L: $2.0147 - H: $2.1391
Капитализация $118.993b Rank 4
Цена в час новости $ 0.3585 (478.16%)

sec past xrp eos instances defensive security

Источник: newsbtc.com

sec past → Результатов: 100


Фото:

Bitcoin Price Watch: Currency May Be Down, But It’s Still an Unstoppable Force

At press time, the father of cryptocurrency is back down in the $6,300 range. This is about $200 lower than where it has stood over the past couple of days. The currency made headlines after it rose back up to $6,500 following word that the Securities and Exchange Commission (SEC) was closing the public commentary […] The post Bitcoin Price Watch: Currency May Be Down, But It’s Still an Unstoppable Force appeared first on NullTX.

2018-11-10 00:16


Фото:

Bitcoin Price Watch: Is Another Bull Run in Store?

At press time, bitcoin is trading for over $6,700. That’s roughly $400 more than where it’s stood over the past week, and many are wondering if a year-end bull run is at hand. Recently, the Securities and Exchange Commission (SEC) sought further industry help and commentary regarding the bitcoin ETF submitted by joint venture VanEck […] The post Bitcoin Price Watch: Is Another Bull Run in Store? appeared first on NullTX.

2018-9-22 21:09


Фото:

The SEC Is Delaying Another Bitcoin ETF Decision

The United States Securities and Exchange Commission (SEC) is in no hurry to review the pile of Bitcoin ETF filings it has been accumulating over the past year. Not three weeks since postponing its decision on five other Bitcoin ETFs, the SEC has indicated in a public statement that it will be delaying its decision to approve or reject SolidX Bitcoin Shares until late September.

2018-8-8 17:15


Фото:

Crypto Week In Review: Nasdaq Leads Regulation Talks, Legitimizing Bitcoin

Discussion about cryptocurrency-related regulation continued into this past week, as Bitcoin took the lead, driving the market up by just under 10% overall. Winklevoss Twins’ Revised ETF Gets Shot Down By The SEC On Thursday, the announcement of the most recent verdict regarding the Winklevoss Twins’ Bitcoin ETF hit headlines all across the industry.

2018-7-29 10:00


Фото:

Coinbase RoundUp: Token Additions, SEC Acquisition, and FINRA Probe?

One of the first crypto unicorns in the space, Coinbase, has enjoyed the same volatility native to the sector it represents just this past week. Most notably, the firm announced the potential addition of five new cryptocurrencies, an odd (and apparently unnecessary) declaration regarding confirmation from the SEC and FINRA, and a tacit response from the Ripple community for not.

2018-7-23 04:00


Top 3 SEC-Compliant ICOs

For investors who were successful during the 2017 ICO craze, the wild west nature of the crowdsale model already appears to be a thing of the past. As the US SEC has begun to take an increasingly active stance throughout 2018 on the disruptive ICO approach, more and more startups are electing to limit the […]

2018-7-5 22:00


дальше еще 51 новостей →

Партнеры Currencies.ru



Реклама на Currencies.ru

Самое свежее на Currencies.ru

XRP Jumps 4%, Whale Reacts With $69 Million Coinbase Deposit

On-chain data shows an XRP whale has moved a large amount of the asset to Coinbase following a 4% Christmas rally in its price. XRP Is Up More Than 4% On Christmas Day After a period of struggle in cryptocurrencies across the board, Christmas has brought back some bullish winds as Bitcoin and company have made some recovery.

XRP Price Battles Key Hurdles: Can Bulls Prevail?

XRP price corrected some losses and climbed above the $2. 25 zone. The price is now struggling to clear the $2. 350 resistance zone. XRP price is attempting a fresh increase above the $2. 250 resistance zone.

XRP Price Prediction: Wave 2 And 5 Targets Put XRP At $7 And $13

A crypto analyst has set an ambitious target between $7 and $13 for the XRP price, basing his predictions on the Elliott Wave theory and Fibonacci levels. According to the analyst’s price chart, Wave 2 and 5 could push XRP to these key targets, marking new all-time highs for the cryptocurrency.

XRP Price Fresh Surge: Bulls Gear Up for Action

XRP price remained stable above the $2. 10 zone. The price is moving higher and might aim for a fresh surge above the $2. 30 resistance zone. XRP price is attempting a fresh increase above the $2. 20 resistance zone.