NewsletterSEC Cites Ripple Token Concentration; XRP Lawyer Says Not To Rely On It
Ripple and the U.S. Securities and Exchange Commission (SEC) have been engaged in a long running legal battle. However, in order to protect the infamous Ethereum speech, the commission cited blockchain firm’s token concentration.
SEC seeks to protect Hinman’s Speech
The Commission in a footnote of its latest filings mentioned an article with the title “The SEC’s Big Cryptocurrency Speech: 5 Things to Know”. It highlighted that some people are dubious that Hinman’s words are sort of good news for Ripple.
It added that it is a fact that Ripple owns a majority of the XRP supply. Blockchain future actions might affect the success of the token. SEC further added that it could have a tough time meeting the commission’s ‘decentralization’ bar. This directly inclines exchanges as Coinbase will remain restive about listing XRP.
However, John Deaton, XRP holder’s lawyer slammed the SEC for its mention. He said it is like a double edge sword for the Commission over citing or relying on such comments. Considering this, just 7 months later Coinbase met with the SEC. They informed that the commission did not consider XRP a security and signals to list it. The exchange in fact listed XRP in February 2019.
Why did Deaton join the Ripple case?
Deaton mentioned that the problem for the SEC is that there specific points in the Howey test which ask how much of the asset any promoter owns. He added that the token concentration is a big issue with every digital asset including Bitcoin.
XRP lawyer highlighted that owning more than 53% of the token with having the founder’s ownership is a major concern. Deaton said that this is one of the reasons why he got involved in the case. He wanted to make sure that the court makes a good difference between Ripple sales and secondary market sales.
Meanwhile, XRP prices have dropped by 2% over the past 7 days. XRP is trading at an average price of $0.372, at the press time.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Is Tether’s Stability at Risk? S&P Downgrades USDT Amid BTC Exposure Concerns
- Senate Targets Dec. 8 for Crypto Market Structure Bill Markup as Bipartisan Talks Gain Momentum
- Bitcoin Could See Huge Institutional Inflows as Nasdaq Boosts BlackRock IBIT Option Caps
- ‘Huge News’: Scaramucci Reacts as JPMorgan Files for Bitcoin-Backed Structured Notes
- Breaking: Grayscale Files S-3 to Convert Zcash Trust Into Spot ETF
- MON Price Prediction: Why Monad Could Be Heading Toward $0.10
- Will Hype Price Hit $50 as Whales Buy Ahead of the $314M Unlock?
- Is Bitcoin Price at Risk of Crash as Treasury Companies Plan Fire Sale?
- Binance Coin Price Prediction as VanEck Files Spot BNB ETF — Is $1,000 Next?
- Dogecoin Price Prediction: Will NYSE ETF Push DOGE to $0.30?
- Pi Coin Price Surges Above $0.25 Ahead of Major November 28 Announcement
