Ripple Investors Want Similar Regulatory Standards And Clarity For XRP Coin As ETH And BTC
Ripple Wants Similar Regulatory Standards For XRP As ETH And BTC
XRP has been growing steadily. However, it has yet to hit its full potential. According to the direction of regulatory relations at Ripple, the main culprit is regulatory uncertainty in the US. This has caused major financial institutions in the US to avoid it.
He Wants Equal Treatment
The director stated that he wants XRP to be treated the same as ETH and BTC. He added that for BTC and ETH, there was policy certainty. This was despite the fact that the US concluded those platforms are unfairly controlled by China. Due to this, a lot of action was going towards the two. He said that the only thing he wanted was to resolve areas where there was uncertainty in the US.
He said he was speaking specifically for XRP, which works much like BTC since it is open source and decentralized. The director added that Ripple only had 7% of the validation power. Thus, he felt that BTC, ETH, and XRP should all be treated in the same manner, which was not happening right now.
He was quick to add that he was not opposed to ETH or BTC in any way. In fact, he said that they still had a lot of potential. The only thing he wanted from regulators was a level playing field for all members of the crypto world. This way, the market could pick any coin they wished to use without any regulatory worries.
- Can Ripple Be Considered a Security?
In the modern era, a Ripple is defined via Howey’s Test, which asks just four questions.
• IS XRP an investment of assets?
According to Ripple, XRP is a digital asset, which was created and sold by Ripple. Thus, it is not an investment tool.
• Is there an expected profit from this investment?
In its creation and sale, Ripple never promised investors that if they held onto the asset, they would make any profit.
• Is there an investment in a common enterprise?
Ripple needs to answer this with solid evidence. This is because Ripple still owns 80% of all XRP. Thus, there is a huge risk of manipulation with Ripple controlling such a huge percentage of all coins. Thus, it has created a lot of debate.
• Do third parties or promoters make a profit?
Market forces, where people buy and sell the coins, determine the price of XRP. Thus, Ripple does not have a problem in this area.
What The Experts Think
According to the Howey Test, Ripple is not really a security. Thus, it needs the same treatment as BTC and ETH. When this happens, many banks in the US will start to use XRP and Ripple technology in the same manner as Euro Exim Bank.
Ripple has proven its competitiveness, managing to get over 200 partnerships signed in just one year. When compared to SWIFT, Ripple offers cheaper costs for every transaction and the speed is much faster. While SWIFT can take about three days for each transaction, Ripple can cut that time down to just hours.