As BTC, ETH, XRP, and other cryptocurrencies keep dominating the market, regulators are keeping watch of any irregular development in the market. They are always on the move to prevent bad actors from taking advantage of any lax regulation.
The legality of digital assets will still remain one of the major items of discussion in the cryptocurrency space and the financial sector at large. There have been countless arguments and counter-arguments regarding how the asset should be treated.
But it seems that the way cryptocurrency is regulated will provide answers to the questions of whether it’s a security, commodity, or something else. Already, some cryptocurrencies are receiving too many criticisms, as regulators are still clamping down on those with unclear objectives regarding their IOCs.
Regulatory concerns affecting XRP’s growth
XRP, which is the third-largest crypto coin has not made headway yet regarding its legality or stance. Many people are still uncertain what to call the cryptocurrency, whether security or a commodity. The uncertainty surrounding the position of the digital assets has actually held its growth and progress. Financial institutions are still not convinced to accept or trade the digital asset because the risk in uncertainly is a huge one.
Ripple seriously working to clear uncertainty
Ripple is trying to set things straight with the way the community perceives the digital asset. Brad Garlinghouse, CEO of Ripple, said at a Switzerland event that the company is seriously working to clear that uncertainty about the nature of XRP digital assets. He said the company has engaged SEC and is making an attempt to convince and educate regulators about XRP’s true nature. Brad said he has strong confidence that things would work out fine and XRP will be recognized completely in the industry. Brad’s comment is coming shortly after Heath Tabert, Chairman of CFTC discussed the regulatory status of XRP in a recent interview.
He further pointed out that the lack of clarity regarding where XRP stands is affecting the growth of the cryptocurrency. Market participants need to be clarified regarding the regulation of XRP and how investors should treat the cryptocurrency. Some market participants think the asset is security while others are classifying it as a commodity. Some even think it’s neither of the two. With this confusion, it would be very difficult for XRP to reach the growth height its developer, Ripple, has projected.
XRP more likely to be seen as an unregistered security
CEO of the Block, Mike Dudas, recently discussed this development in two presentations. The presentation provided comments and posts made by Ripple, which indicated that the company is selling the assets for the need to gain profit.
If this presentation is true, it means that XRP may be regarded as an unregistered security. In this case, Ripple will have to face the lawsuit brought against it by a group of victims who feel Ripple’s earlier position about the asset has made them take wrong investment decisions.