The SEC should declare XRP a stock, says Peter Brandt

November 11, 2020 Coin Payment

[ad_2][ad_1]

Veteran trader and chart analyst Peter Brandt is the latest figure in the cryptocurrency community to challenge the regulatory status of XRP.

According to the chart, XRP – the fourth largest cryptocurrency at the time of publication – is a stock, meaning the coin should fall under the regulatory jurisdiction of the US Securities and Exchange Commission.

“XRP would have been declared as a title if the SEC understood cryptocurrencies,” Brandt supported in a tweet on November 10.

Brandt’s comments came in response to a statement from Twitter user Rexiby crypto, who claimed that “the XRP company owns almost half of the total circulation coins”. According to Brandt, XRP is a “classic case of a market manipulated by a bag carrier”.

Brandt’s remarks may be linked to a Q3 2020 market report from Ripple, a major XRP affiliate. Released on November 5, the report states that Ripple was actively buying XRP, purchasing nearly $ 46 million of the coin in the third quarter of 2020. Company executives pointed out that Ripple “is buying – and may continue to buy – XRP for support healthy markets. “

While Ripple is trying to differentiate itself from XRP, the company still owns a significant amount of currency. According to official records, Ripple owned 60 billion XRP in July 2018, 55 billion of which were in escrow accounts. The company reportedly owns more than half of the total XRP supply.

The long-standing regulatory uncertainty surrounding XRP has previously turned into multiple lawsuits, arguing that XRP is unregistered security. Although it was first raised in 2018, the SEC has not provided a firm position on the matter to date.

Ripple itself is trying to move overseas because US regulations are threatening its business. At the end of October, the CEO of Ripple’s backer and a major technology partner SBI Holdings said Japan is the most likely country Ripple will move to if it leaves the United States.

In August 2020, US Representative Tom Emmer (R-MN) said XRP isn’t a title, but it provided little processing.