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SEC Guidance Gives Ammo to Lawsuit Claiming XRP Is Unregistered Security

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Since accredited investors can buy shares of Ripple Labs then it seems an illegal sale of Ripple Labs shares would have been a breach in security laws. I don't see how that doesn't differentiate xrp and private shares of a company, which would fall under the securities laws of accredited investment. I wonder if the plantiff understands that if they had not followed through with a class action suit they would probably be seeing profit as that hit xrp like damn brick.

It would be interesting to know more about Xspring and how it affects the business model of those granted money for tech advancements. Does Ripple give money to Xspring companies in return for shares/board seats/royalties and so on. Can companies that are developing on the XRP ledger exist and function without Ripple Labs. This would differentiate Ripple Labs from XRP.

If the the Law does define XRP as a security, but no longer considers it to be one, then Ripple may have to pay a fine, but then be declared as of now not to be a security.

Long story short, The article is bias. I think most of us agree that the securities issue is a thorn in the side of Ripple and anyone who speculates on the rise of XRP as use cases increase.

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2 minutes ago, codiusrex said:

The recent FCA commentary re: “XRP as a utility token and not a security” is relevant. 

You are correct! Does Murica need to wake up? I’m not quite sure but they will be left behind eventually 

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I believe Ripple sells XRP through the MSB, which is regulated by FinCen and has been for many years. Retail investors aren't directly purchasing XRP from Ripple. Additionally, unsure who tuned in to Steve Mnuchin's press conference but he clearly states that any business that functions like a MSB must be regulated by FinCen whether it be a traditional company or a crypto company. 

https://www.fincen.gov/sites/default/files/shared/Ripple_Facts.pdf

https://www.fincen.gov/sites/default/files/shared/Ripple_Remedial_Measures.pdf

https://www.fincen.gov/news/news-releases/fincen-fines-ripple-labs-inc-first-civil-enforcement-action-against-virtual

https://www.justice.gov/usao-ndca/file/765721/download

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Posted (edited)

My fear has for a long time has been that the US generally sees cryptos as a threat, not just bitcoin, but any crypto that can ultimately take value away from US fiat, interfere with US monetary policy, and affect USD global influence.

Anyway, if a company decides to build on top of a public 'blockchain' like IBM, SatoshiPay, etc. have done with the Stellar network, does that make XLM a security. No, I really don't think so because then any company that uses a public crypto in this manner and dominates it or not automatically turns that public crypto into a security, which doesn't make any sense whatsoever. I''m sure they're are companies building on top of Ethereum, but that doesn't make Ether a security.  In the case of Ripple, it was gifted XRP, and then decided to build some of its banking products on top of the public XRP network, so XRP shouldn't be a security either even if for argument's sake XRP is the only company building on top of it and holds most of the XRP.

 

Edited by enrique11

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If a publicly traded company goes bankrupt, its stock price goes to $0 and it ceases to be traded. Unlike a security, XRP cannot go bankrupt. In the worst case if Ripple goes bankrupt, XRP will still exist and it will be worth something (even if it’s very little). It will still have utility with or without Ripple. With its fast transaction speed and minimal energy consumption, some other group / entity would take advantage of the opportunity and find a way to utilize XRP if the worst case occurred.

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1 hour ago, peanut56 said:

Long story short, The article is bias. I think most of us agree that the securities issue is a thorn in the side of Ripple and anyone who speculates on the rise of XRP as use cases increase.

"Repeat a lie often enough and it becomes the truth" - Joseph Goebbels

This is the only reason it is a "thorn in the side of Ripple".  The losers who hate XRP have been making up nonsense for a long time.  That is why it is a thorn, not because there is an ounce of credibility to this claim.

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10 minutes ago, mrhat75 said:

"Repeat a lie often enough and it becomes the truth" - Joseph Goebbels 

That's misattributed to Goebbels. He said something similar:

"That is of course rather painful for those involved. One should not as a rule reveal one’s secrets, since one does not know if and when one may need them again. The essential English leadership secret does not depend on particular intelligence. Rather, it depends on a remarkably stupid thick-headedness. The English follow the principle that when one lies, it should be a big lie, and one should stick to it. They keep up their lies, even at the risk of looking ridiculous."

https://shmaltzandmenudo.wordpress.com/2017/04/07/famous-sayings-56-repeat-a-lie-often-enough/

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3 hours ago, xrp_sea said:

If a publicly traded company goes bankrupt, its stock price goes to $0 and it ceases to be traded. Unlike a security, XRP cannot go bankrupt. In the worst case if Ripple goes bankrupt, XRP will still exist and it will be worth something (even if it’s very little). It will still have utility with or without Ripple. With its fast transaction speed and minimal energy consumption, some other group / entity would take advantage of the opportunity and find a way to utilize XRP if the worst case occurred.

If SEC decides that this is a security, then all exchanges that are not registered to carry securities will delist it. Coinbase will have it off in 24 hours. Even if it has a utility value where will you sell it if the exchanges delist it?  A foreign entity that that lists XRP may not delist it, but it will not mess with the USA/SEC and will throw away all it's USA customers.  

 

 

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1 hour ago, Spekul8 said:

If SEC decides that this is a security, then all exchanges that are not registered to carry securities will delist it. Coinbase will have it off in 24 hours. Even if it has a utility value where will you sell it if the exchanges delist it?  A foreign entity that that lists XRP may not delist it, but it will not mess with the USA/SEC and will throw away all it's USA customers.  

 

 

If the SEC declares that XRP is a security, only US exchanges would have to delist it. The US is only 4% of the world's population. Most exchanges have delisted Monero and it's still trading around $83. Granted it would be really bad news, but not the end of XRP.

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Posted (edited)
7 hours ago, Valhalla_Guy said:

I have no concerns how this plays out, for I have already accepted the fact that XRP is headed to ZERO.

I am simply enjoying the show.

Wait, so....you are "enjoying the show," in anticipation that XRP will go to zero?  So is it reasonable to assume you have dumped all your XRP's (perhaps at a loss, maybe consistent with your January 2018 membership here), and you are actually still HERE and still posting in this forum?   No offense, but do you have a real life?

Edited by Sharkey

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15 minutes ago, xrp_sea said:

If the SEC declares that XRP is a security, only US exchanges would have to delist it. The US is only 4% of the world's population. Most exchanges have delisted Monero and it's still trading around $83. Granted it would be really bad news, but not the end of XRP.

SEC is the world's largest regulator. If SEC declares that Ripple is a security, it would echo worldwide across all regulation whether FCA in the UK, Bafin in Germany or ASIC in Australia. What they will do at that point is only a guess, but it will not do good things to XRP.    

 

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