Apollo Posted February 10, 2018 Share Posted February 10, 2018 I agree that XRP will probably be deemed a security. XRP seems to fit under the "Howey test" which the SEC uses to evaluate non-standard offerings. This does give added regulatory risk to XRP, but it's not all gloom and doom. Ripple has led the space in terms of KYC, AML, and a few other aspects of compliance. Ripple's settlement with the DOJ is probably an additional blessing as the DOJ (not the SEC) is responsible for criminal enforcement of securities laws. The settlement is far from a perfect shield but it could help Ripple buy some time until the regulatory landscape is addressed by Congress. Additionally, unlike most others in the space, Ripple very likely has sufficient funds to pay a fine and comply with the registration provisions. The main drawbacks I see are that registration would only affect some players in the space and it may limit access to standard Crypto exchanges. Quite simply, that is a huge problem with the SEC's approach. Ripple and other possibly disadvantaged coins need to higher some heavyweight lobbyists to ensure the regulatory system is not picking winners and losers. It is downright crazy to allow trading with reduced regulation in LTC but not XRP just because of the consensus mechanism. On the bright side, registration would probably get XRP added to some standard stock and/or commodity exchanges. Lamberth 1 Link to comment Share on other sites More sharing options...
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