According to US cryptocurrency exchanges, XRP is a security. The council of Crypto Ratings gave XRP, a good ⅘ on being a perfect security asset. The San Francisco-based Ripple, specializing in blockchain remittance, had traded XRP tokens as well as the token interests prior to the utility’s existence. Also, Ripple had endorsed XRP. This implied that the firm demonstrated the reliability of the asset in long-term opportunities for investments.
Coinbase is considered to be on an expansion drive. The exchange recently released its platform supporting XRP trading for its users in New York.
Ripple, summed up CRC, in security linguistics while promoting XRP. None the less, the development of the asset and its usage remains decentralized. The council reminded:
The score does not reflect a legal conclusion and is no indication of the qualitative value of an asset or suitability for investment or any other purpose.
CRC is a US regulatory backed up cryptocurrency exchange, that includes names like Circle, Kraken, and Coinbase. This maintains XRP’s alignment with the securities standards as consolidated by the SEC, along with “Framework for Investment Contract of Digital Assets.”
The council validated Ripple’s in house asset with the statements by officials of SEC, ruling out its odds to be a security asset.
The report from the Wall Street Journal said that the US exchanges of virtual currencies require an understanding on which tokens are pertinent to be on the list and which are not, on their platforms for trading. This need has led to a unification of CRC, as a council that studies and categorizes the cryptocurrencies according to their status of securities’. These firms said that they might go wrong on the methods that they resort to, to analyze these cryptocurrencies. Hence, firms who believe that the score of their token is wrong can face a dispute.
It’s our hope the SEC will view this as a positive step,” said Mary Beth Buchanan, the general counsel at Kraken, adding that their report shows “the SEC what each exchange is doing to come to a decision.
Ripple, is also fighting the battle on legal forefronts with the investors accusing the firm of trading the “unregistered securities.” The CEO, Brad Garlinghouse, also repudiated the accusations, saying that XRP is exclusive of Ripple, a has just managed to develop a technology that employs the asset in making cross-border transactions.