US Regulator Addresses The Fate Of XRP
The XRP scandal continues. XRP is accused of being a security, and Ripple is also slammed for being the company that created the coin for its benefits.
The subject has been debated for an extended period of time, making Ripple enthusiasts and the XRP army of fans angry.
Brad Garlinghouse, Ripple CEO addressed the scandal as well, explaining that it’s outrageous and offering reasons for which XRP is definitely not a security.
US regulator talks about XRP
Now, it’s been revealed that Heath Tarbert, who is the new Chairman and Chief Executive of the US Commodity Futures Trading Commission, said that his agency is focused on creating a market for cryptos.
Tarbert spoke about crypto with Cheddar Live, and said that Bitcoin (BTC) and Ethereum (ETH) are the two digital assets that fall under its jurisdiction.
“By allowing them to come into the world of the CFTC, we’re allowing the futures markets to develop based on these products, and in that way, when people are interested in purchasing a particular digital asset (of the two, Bitcoin or Ether), they can rely on the futures markets,” he said.
He continued and explained that the futures markets have been around for over 100 years, “which have price discovery, hedging, and the risk management, and so in many ways it’s helping to legitimize, in my view, and add liquidity to these markets.”
Regarding XRP, he was asked a direct question on whether the crypto falls under his agency purview.
He responded the following: “It’s unclear. Stay tuned, I would say. Part of the issue is the jurisdiction we share with the SEC. If it’s a security, it falls under their jurisdiction. If it’s a commodity, it falls under ours.”
— Cheddar🧀 (@cheddar) January 13, 2020
He continued and explained that they have been working closely with the SEC over the past year or so “to really think about which falls in what box, because if I hear anything from market participants, it’s that we really need clarity.”
Regarding the price of XRP, there have been a lot of optimistic predictions involving the coin. It’s even expected that XRP can reach $0.33.
At the moment of writing this article, XRP is trading in the red and the coin is priced at $0.225975.
Garlinghouse is both the CEO and Chairman of Ripple Labs. This year, Ripple surpassed 300 partners, including over 115 banks worldwide. Having launched On-Demand Liquidity (ODL) for cross-border payments, Ripple now has more than 20 partners using XRP for ODL, including Moneygram, Western Union, and American Express.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.