WHERE IS THE PROBLEM? Classify two of the top three coins by market cap, ethereum and Ripple's XRP, as securities

[JC83]

8 hours ago, corak said:

A company is not a type of 'traded' asset. Equities are, but XRP is not a derivative of Ripple's equities, something like an option contract is. 

Again, a derivative is a financial instrument that derives its value solely from the performance of another financial instrument, XRP just doesn't

I understand that. I was loosely saying it could fall under that category. I'm of the opinion that XRP will not be deemed a security and gave reasons for that. But I'm also trying to see reasons why others would label it a security

[JC83]

2 hours ago, tev said:

If Ripple the company ceases to exist, your XRP private key will continue to exist, and you will still be able to use it to move your XRPs to different addresses on the XRP ledger. The existence of the XRP ledger does not require the existence of a company called “Ripple ”.

There are already full nodes in existence that are owned by non-Ripple entities, and you too can be one of them if you own a suitable computer. As long as someone somewhere is running a validator, you can still move your XRPs, and the recipients can provide goods, services or assets in return. XRP is no more an underlying asset of Ripple than is your wedding ring an underlying asset of some central bank.

I understand all of that. Like I said before I'm just seeing reasons why it could be labeled a security. The problem with this is if they do mistakenly label it a security and we investors still hold our XRP on or off exchange they can close all avenues of exchange into fiat to public retail. Meaning we'd be left in the desert with a bucket of seeds and no water. 

[Guest]

27 minutes ago, JC83 said:

they can close all avenues of exchange into fiat to public retail.

All avenues? 95% of people live outside your government's jurisdiction, and some of them run cryptocurrency exchanges. Just send your XRPs to a non-US exchange and sell them there. If your XRPs are at an address for which you hold the private key, your government can't stop you (short of implementing their own version  of China's Great Firewall).

[JC83]

7 hours ago, tev said:

All avenues? 95% of people live outside your government's jurisdiction, and some of them run cryptocurrency exchanges. Just send your XRPs to a non-US exchange and sell them there. If your XRPs are at an address for which you hold the private key, your government can't stop you (short of implementing their own version  of China's Great Firewall).

The firewall might just be the case but that's s measure I do not think they'll take. Even though they did block purchase of the Petro by us citizens.

[Hodlezerper]

On 4/25/2018 at 12:51 PM, makisushi said:

Question: Where is the problem? Pls. see https://en.m.wikipedia.org/wiki/Security_(finance)

Take a look at the classification.

More control = OK / More regulation = OK 

Thats was banks, fonds all financial institution want!  So, breathe

Perfect for Rippel and Ether. Reverse not perfect for other cryptos.

Not everything is like at first sight.....

XRP is not a security and if it gets classified as an equity, the entire use case of XRP goes out the window. 

It is a digital commodity.