XRP Security Debate Continues on Social Media as Ripple Community Leader and Ari Paul Dispute Outcome

The XRP community continues to debate whether XRP is a security or not. During this year, the market has been debating on this issue, but there is no unified position on the matter. XRP supporters will always explain that XRP is not a security. However, those opposed to XRP and some analysts have a different position and believe that the digital asset has several features of security.

In a recent tweet written by @XRPTrump, he said that XRP was created before Ripple, meaning that it cannot be a security. With this comment, he answered a Tweet uploaded by the cryptoanalyst Mike Dudas in which he mentioned that there is a ‘tremendous amount of danger and risk’ in Ripple and XRP.

What motivated XRPTrump to answer this tweet was the fact that @AriDavidPaul has liked the tweet uploaded by Mike Dudas.

Ari Paul did not take long to answer. He said that it is very important to pay close attention to what it is said. He said to XRPTrump that providing inaccurate legal advice could make him personally liable. Furthermore, he said that even if Ripple was created five years after XRP, it could still be considered a security because the timing of Ripple’s incorporation of XRP is not part of the Howey test.

The Howey test was created by the Supreme Court in order to understand whether some assets are considered securities or not. If they are securities, they must provide certain disclosure and be registered with regulatory entities.

Ari Paul asked XRPTrump what he thinks about the tweets related to website captures mentioning and explaining that Ripple created XRP. Nevertheless, he did not receive an answer from XRPTrump.

Another XRP supporter, @EDadoun, entered the conversation and asked Ari Paul whether he would be satisfied if the SEC considers that XRP was a security in the past but not it is not.

On this issue, Ari Paul commented that he is not sure what ‘satisfactory’ means. Furthermore, he said that he would take such an SEC statement for exactly what it was. The discussion continued with EDadoun saying that XRP has been considered not a security in different countries and that this sets a precedent in the United States, additionally, he said that those that are against Ripple being considered a security would not be happy if regulatory agencies would consider it not a security.

Ari Paul continued the discussion saying that EDadoun would ignore the law in the United States if US law says XRP is a security but Australian law says that it is not a security. As he says, the US law applies to its citizens and to US companies.

In another tweet, XRPTrump said that XRP existed only on the XRP ledger and not on other networks such as Ethereum (ETH). And Ari Paul agreed on that noting that this is the strongest defense for XRP never having been a security.

There were other individuals involved in the conversation and giving their opinion on the matter related to XRP being considered a security or not. Now, it is necessary for the U.S. Securities and Exchange Commission to provide clarity on the matter. There are several companies and institutions that do not want to take risks and start operating with an asset that could be considered a security.

Until now, Bitcoin and Ethereum are the two assets not considered as securities in the cryptocurrency space. Several ICO tokens have been labelled as unregistered securities and some ICOs have already been reached by the regulatory agency to regularize their situation.

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