XRP May Be a Security After All, According to New Court Filing
Disgruntled XRP investors haven’t been able to convince lawmakers that the cryptocurrency is being sold by Ripple as an unregistered security, but that could be about to change following a new complaint filed in California. This time, investors who are looking to take Ripple to task are using the U.S. Security and Exchange Commission’s latest guidance on digital assets.
Investors Submit New Complaint Against Ripple
Several XRP investors have filed an amended complaint against Ripple in California for allegedly selling unregistered security tokens – a claim Ripple has vehemently denied. The amended complaint is based on the SEC’s “Framework for Investment Contract Analysis of Digital Assets,” which was released back in April.
As Coindesk reports, the case against Ripple is probably the first to rely on the SEC’s newfound guidance, which could influence the proceedings. The original complaint is more than a year old. Ripple has until next month to issue a formal response.
Ripple CEO Brad Garlinghouse has argued convincingly in the past that XRP is not, and have has been, a security. In June 28, he gave three reasons why this is the case:
- “If Ripple as a company shut down tomorrow, the XRP ledger would continue to operate.”
- “If you buy XRP, you’re not buying shares of Ripple.”
- “XRP is solving a problem. There’s no security in a utility.”
XRP Is a Scam: Tone Vays
Cryptocurrency trader and analyst Tone Vays believes the SEC will come down hard on Ripple and its “scam coin” XRP.
“The SEC is bringing Thor’s Hammer,” Vays tweeted last week in response to the amended complaint. He took a jab at the XRP community, calling it the “Army of the Brain Dead.”
XRP has one of the most vocal supporter base in all of crypto, and they firmly believe that Ripple’s technology will revolutionize the payment landscape. We’re talking disruption of the SWIFT banking system once XRP technology reaches critical mass.
XRP Circles $0.28
The XRP price saw brisk gains at the start of Asian trading, but was still hovering below its previous long-term support. The third-largest cryptocurrency by market capitalization traded as high as $0.2885, according to CoinMarketCap. It continues to hold above $0.28, having gained 6%.
At current values, XRP has a total market cap of just under $12.1 billion. Trade volumes were reported at $1.2 billion.
XRP has lagged all of its large-cap peers for most of 2o19. Since peaking north of $0.50 in late June, the cryptocurrency has fallen by 42%. It’s one of the only major cryptocurrencies to report losses this year.
Last week, XRP fell below $0.30 for only the second time since April, according to CoinMarketCap’s charts.. The 30-cent handle had previously served as a major support, even when upside momentum was limited.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Chart via CoinMarketCap.