SEC thinks about changing the XRP condition from safety to commodity, just like Ethereum.
If this movement passes, Xrp She will have less on her board to deal with government restrictions in her favor and will take a better location than the market.
Meanwhile, Vermont withdrew from Coinbase, and blamed SEC to convert its position in organizing the encrypted currency. Such developments have a major impact on the laws that classify and regulate cryptocurrencies.
SEC re -evaluates the XRP case in the changing regulations in the encrypted currency
Makes the SEC V. Ripple everyone is concerned about the conclusion, as the Committee accused XRP of being unlicensed safety and tried to suspend its commercial activity.
However, recent reports indicate that the two parties are scheduled to reach a settlement, with Ripple aspiring to negotiate the adjustments that can have huge effects on the encryption space.
The Fox Business Network (FBN) Charles Gaspino said that the Supreme Education Council is looking at whether XRP will continue to trade as a commodity, unlike security, such as Ethereum its transition from ICO to a commodity. He pointed out that the only difference is that Ripple had been prosecuted, but Ethereum was not because ETH has since turned into a commodity.
If the proposal to change XRP from safety to a commodity is approved, the monuments will turn to the coded currency regulations in the country. SEC Hester People Commissioner hinted that some digital assets, such as coins, will not be dealt with as securities anymore.
The committee is also interested in partnership with the best commodity organizer in the United States, the CFTC Futures Trading Committee. If SEC settled its problems with Ripple, the market value of XRP may reach its highest levels ever.
Ripple wants to be the next ethereum
Ripple wants to be XRP like ETH so that SEC is classified as a transactions and not an investment contract.
The Securities and Stock Exchange Commission can also consider previous legal cases to support its decision, including a lawsuit in 2022 in which Fairmont and other American states filed a lawsuit against Coinbase to break security regulations through its exciting services.
However, the company’s chief legal official at the company recently revealed that Vermont had dropped all the charges, claiming that the new SEC approach to encryption regulations made her old argument unrelated.
Fairmont organizers have explained that the Supreme Education Council has reached a new workplace to review the for best encryption regulations. Since one of the countries had already recognized that its previous arguments are no longer withstanded, SEC decided that it was very harsh on Ripple and took the next step to re -classify XRP.
Ripple Battles SEC on the situation with the case approaching
In 2020, SEC filed a lawsuit against Ripple. SEC claimed that Ripple XRP illegally sold XRP as unregistered security. The news came as a great shock to many because XRP was the third most popular encryption in late 2017. However, Ripple defended itself by saying that XRP is not safety but a digital currency.
The XRP proposal was valid as the full offer of 100 billion symbols was extracted simultaneously, making border payment transactions faster and more efficient. Ripple has more XRP in the guarantee and only release it in measurable quantities to keep the market stable, but SEC did not like it.
Howwey test is classified as assets as a guarantee under the United States Law if people invest their money in a joint venture and expect to benefit from the efforts of another person.
SEC argued that Ripple did so completely and added that the company has more control over this altcoin supplies and actively promoting its value, which means that XRP should have been safely registered. To summarize, the lawsuit said that Ripple sold XRP as unregistered security and raised about $ 1.3 billion, which violates the Federal Securities Law.
Both sides are now in settlement negotiations, which makes the issue closer to the decision. However, there is no official word about whether they are planning to end the case.
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