Blockchain startup Ripple’s cryptocurrency does not fit in the securities category as per the US regulations, one of the company’s top executives has said.
In an interview with CNBC, Ripple Foundation’s chief market strategist Corey Johnson sought to put to rest the speculation that XRP was not added to popular exchange Coinbase due to questions over its status.
We absolutely are not a security. We don’t meet the standards for what a security is based on the history of court law,
– Johnson told CNBC during the interview.
According to Johnson, Coinbase and Ripple have been engaged in discussions on the possibilities of adding XRP to the exchange and at no time did the topic of XRP’s status with the regulators arise during the talks. “Coinbase never ever raised the issue of whether or not XRP is a security in our discussion about listing XRP. We’re 100 percent clear, it’s not a security. We don’t meet the standards,” Jonson stressed.
A Coinbase official confirmed that the two companies were involved in discussions and the question of regulation has never emerged. The official confirmed that the conversations are around the criteria for addition of assets broadly, which the company updated in March.
Uncertainty in the Market
Johnson’s statement comes at a time when there is a debate on whether the US security laws are also applicable to cryptocurrencies. The US Securities and Exchange Commission has indicated the laws apply generally to them, and it has also issued dozens of subpoenas and requests for information on sales of new digital coins.
Classification of digital assets either as securities, property, or currency is difficult in the US, as the government is yet to develop a clear regulatory structure.
Recently, US officials have also warned exchanges not to list unregistered tokens, which Bloomberg cited last week as a possible sticking point to Ripple’s addition to popular US exchange Coinbase.
It is this uncertainty which has seen many exchanges delist different cryptocurrencies as they are unaware of their status. Currently, Coinbase only lists four coins: Bitcoin, Bitcoin Cash, Ethereum and Litecoin. The platform has more than 13 million users according to the end-of-November statistics, and traders have speculated that the addition of a new coin to Coinbase would likely bring in more buyers. Traders were also hopeful that XRP would be added to the platform due to its popularity.
Ripple’s cryptocurrency, which hit a record high of $3.84 in January, has since dropped in value – much like other major coins in the market.
Meanwhile, Cointelegraph reports that yesterday, Ripple invested $25 mln worth of XRP into the Blockchain Capital Parallel IV LP venture fund. Ripple hopes the new investment will provide an opportunity to examine new use cases for the XRP Ledger and Interledger Protocol.
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