Currently, the talk of the Crypto City tends to be Ripple and its case by the Securities and Exchange Commission (SEC) for allegedly selling unregistered securities through XRP transactions. In the midst of major exchanges announcing that their platforms will no longer allow XRP trading, effective by 2021, SBI Holdings has argued that it is still in support of Ripple.
A major player in the financial sector, SBI Holdings clarified that in Japan, XRP was known as a cryptocurrency asset rather than a security asset. As a result, the securities laws were not applicable to the token.
Per Sadakazu Osaki, a lead executive at the Nomura Research Institute:
“XRP is widely traded by crypto asset exchange companies in Japan. Under Japanese law, XRP is a ‘cryptocurrency asset’ and it is not applicable to ‘securities’ under the Financial Instruments and Exchange Act.”
Is there still hope for Ripple despite lawsuit?
SBI Holdings appear undeterred in this regard, and they may not be the only ones in the blockchain and fintech field to show their support. While Ripple’s operations are already heavily impacted in the US, with major exchanges such as Coinbase and Bitstamp announcing that XRP will no longer be eligible for trading on its platform in the immediate future, its prospects outside of America will remain unscathed. In other jurisdictions, such as the United Kingdom, XRP is not classified as protection, but rather as currency.
However, the price of XRP may not be recovered quickly. As several have rushed to dump XRP, the token has lost more than $2 billion in market value, plummeting by 20% on the leading platforms.
The future of XRP in the US remains unknown. Previously, Brad Garlinghouse, CEO of Ripple, criticised the US for being a member of the G20 to classify XRP as defence.
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