Ripple Official Explains Why XRP Should Not Be Classified As Security
A senior Ripple official has come out to explain why the SEC is wrong.
Uncertainty Over XRP’s Official Market Position
Ripple’s head of strategy Cory Johnson has addressed the regulation concerns around XRP. Speaking during an interview, Johnson spoke on XRP being considered as a security before the SEC. At the moment, XRP is haunted by regulation uncertainty about its status. If the SEC declares XRP as a security, a number of significant changes will take place in the ecosystem. It means that the ecosystem will be closed locking out investors.
Furthermore, such classification will hamper Ripple’s intentions to use xRapid. It means that trading platforms will delist the coin. Speaking to a media outlet, Johnson gave his opinion regarding the issue.
He maintained that XRP has never been a security considering its relationship with Ripple. He stated that when investors buy any amount of XRP, they do not automatically own shares within Ripple. They can never be entitled to profits or dividends. He added that in the event that Ripple as a company closed shop, it will not have any impact on XRP. Johnson said that XRP has an independent ledger from that of Ripple.
He added that SEC should consider this aspect. Johnson noted that SEC was looking at the issue from this angle and once complete, XRP will not be classified as a security.
Johnson also spoke about the protection of investors. Generally, many players in the crypto space usually want to ensure that investors are assured of protection on their specific platforms. He acknowledged that we have bad elements who take advantage and steal money from investors.
The Ripple official said that attacks on investors are witnessed in almost all sectors of the financial system. He gave the example of the atomic and gas sectors and the dot-com period. Johnson said that with cryptos we have shady ICOs that are out to steal from investors.
Such ICOs have forced SEC to step up measures on investor protection. Globally, other regulators are also taking action regarding investor protection. For the case of SEC, complete regulations for the sector have not been released. According to Johnson, this regulations should be enacted faster since the current uncertainty is inconveniencing those who want to come up with different technological products.