Ripple is already existed for years, that XRP is a Security (dt. for the securities) should be. Thus, the company would be sold illegally a securities to investors. If XRP as the value of paper should be classified, then only the Ripple before the legal problems, but also the XRP price is not in front of a possible sell-off. Now the CEO of Ripple, Brad Garlinghouse, has reported the current Situation to the word, and explains why XRP is not a Security.
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Ripple and the XRP class-action lawsuit
Ripple already has a hard time with the supervisors behind. It still goes to the correct classification of XRP. For a while, the company is stuck in a class-action suit-procedure in order to determine the classification of XRP. In a resolution, which was submitted in December 2019, not requested Ripple assign the case back, since this is quite legal. The action began in the year 2018 and was initiated by investors and members of the XRP Community. These are, in fact, that Ripple has not sold ‘registered’ XRP to you.
Ripple’s request, set the suit seeks, has now been submitted to the U.S. District Court for the Northern District of California. This means that now, for all that, it could take much longer, until a final decision by judge Phyllis Hamilton will be taken. It was expected that the judge the day before yesterday, i.e. on 15. In January, a judgment. No one can say how long it will take until the case is finally resolved will be. Until then, still some question marks certainly remain open.
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Ripple CEO Garlinghouse: “XRP is not a value paper”
Garlinghouse goes All the way and has said in a recent interview with CNBC, that it is impossible that XRP as the value of paper is classified. He takes out Ripple completely from the responsibility, and gave some reasons why XRP is not a value paper.
I think it is very clear that XRP is not a value paper.
The reasons of garling house of one or the other, has worked with Ripple and XRP already know certainly. Ripple and XRP are two different entities, you can’t merge directly to each other. This is mainly due to the fact that XRP and the XRP Ledger can function without a Ripple, and survival. The have solved the founder smart.
(XRP) exist independently of the Ripple, to the company. If Ripple includes the company tomorrow, the XRP Ecosystem more. It is an independent Open-Source technology.
The CEO of Ripple added that the possession of XRP brings to the holders in any way with Ripple in the connection. The possession of XRP is anyone equity or shares in the company.
XRP as the value of paper would have serious consequences
For garling house XRP does not meet the qualities of a security, therefore, it can be as such, not classified. He is convinced that the decision for XRP will be positive.
I know of no Argument why XRP as the value of the paper should be seen, so I’m not Worried about that.
A negative judgment for XRP would have some significant consequences. Not only that, Ripple would have to pay a high penalty, but also a possible sale of XRP on the global stock exchanges. The panic selling would let the XRP price within the shortest possible time to crash. But we are far, if you go by the Feel of garling house, very far. We are curious when and how the decision will be. We will keep you up to date.
Is classified, in your opinion, XRP as the value of paper? What would be the consequences for the price and Ripple?
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