Craig Wright Says XRP is a Security And WIll Be SEC’s Next Target
After supporting Bitcoin SV implementation during the recent forking of the Bitcoin Cash blockchain, Craig Wright is now focused on Ethereum and XRP. Craig is popular for labelling himself as Satoshi Nakamoto, the brain behind the formation of Bitcoin.
On his Twitter timeline, Wright recently posted that ETH is no longer useful for the real-world application. He backed his argument by alluding to the enactment of regulations against ICOs and virtual currencies by the SEC. The tweet also mentioned that XROP is likely to suffer the implications of the new rules because it is essentially an unregistered security token.
According to several experts, both from the crypto space and financial oversight authorities, XRP does not satisfy the requirements of the Howey Test, meaning that it cannot be classed as a security. Nonetheless, Wright maintained his stance that XRP is indeed a security token.
Previously, a disgruntled investor filed a lawsuit against Ripple for supposedly breaking the regulations governing securities. The case was later withdrawn voluntarily due to lack of merit. Moreover, in this regard, a senior executive at Ripple stressed that XRP is not a security. Sagar Sarbhai said that XRP is not a security because:
- Buying XRP does not equate to buying shares of Ripple, the firm.
- XRP is independent of Ripple. This means that if the company collapses, XRP would still exist.
- XRP has a decentralized open-source ledger that is accessible to the public. Also, the blockchain’s consensus algorithm requires several validators.
Still, Wright remained adamant that XRP fits the description of a security. To this end, he tweeted that XRP should be perceived as a security because its owners sell it with the hope of making a profit. Wright believes that XRP must have a utility offer for it not be considered as a security.
Over time, Wright has earned the reputation of being a cryptocurrency critic. Some of the currencies he has criticized include Bitcoin, Bitcoin Cash, Ethereum and Ripple. Most recently, he suggested the mining of empty blocks to hinder the development of Bitcoin ABC, the main opposition to Bitcoin SV during the Bitcoin Cash hard fork.
A similar strategy has been employed by SharkPool, which buys altcoins and exchanges them for Bitcoin Cash.