The Great XRP Debate
In the wild world of cryptocurrency, few controversies ignite the passion of traders and enthusiasts quite like the regulatory status of XRP. Veteran trader and chart analyst Peter Brandt recently joined the fray, declaring that XRP should be classified as a security. According to Brandt, the fourth-largest cryptocurrency faces a grim analysis thanks to the oversight of the U.S. Securities and Exchange Commission (SEC).
Is XRP a Security? Brandt Weighs In
Brandt didn’t hold back on social media, tweeting about how “XRP would have been declared as a security if the SEC understood cryptos.” His comments stirred up the pot in an already simmering debate. Some believe that because Ripple, the company behind XRP, holds a considerable portion of the total coins in circulation, it leads to market manipulation. Rexiby crypto, a Twitter user, pointed out this very issue, prompting Brandt’s assertive response.
The Ripple Effect
If you dig a little deeper into the drama, Ripple’s recent Q3 2020 market report sheds more light. Released on November 5, it informed investors that Ripple had actually bought nearly $46 million worth of XRP in the previous quarter. They claim this is to foster “healthy markets,” but one can’t help but wonder if it’s simply a desperate attempt to reinforce their own significant holdings while maintaining some control.
Ripple’s Hefty Supply of XRP
For those not keeping a close eye, it’s worth mentioning that as of July 2018, Ripple owned an astonishing 60 billion XRP, with 55 billion stashed away in escrow. So yes, they own more than half of the total supply, which raises eyebrows about potential market manipulation and the true nature of XRP’s status.
The SEC Standoff
The regulatory fog surrounding XRP has not only confused investors but has also led to lawsuits alleging it is an unregistered security. Although these concerns surfaced back in 2018, the SEC’s stance remains vague to this day, leaving both Ripple and its investors hanging in limbo.
Ripple’s Next Move
Seeking clarity and a stable environment, Ripple is considering relocating operations outside the U.S. Recent comments from the CEO of its major partner, SBI Holdings, hint at Japan as a potential refuge. It seems they’re getting fed up with the red tape that continues to tether the cryptocurrency enterprise.
Political Voices in the Mix
Even in the political arena, XRP’s status has sparked debate. U.S. Representative Tom Emmer (R-MN) stated in August 2020 that XRP shouldn’t be classified as a security, although his argument lacked depth. Clearly, the conversation is just getting started, and it looks like everyone wants a piece of the XRP pie.
