Ripple Chief Claims XRP is not a Security
Amid speculations that Fintech based startup Ripple cryptocurrency XRP, is a security based on US regulations, the Foundations chief strategist (Market), Corey Johnson claimed that XRP had nothing to do with security.
Ripple is not listed on cryptocurrency exchange platform Coinbase and allegations are that it might be working as security and its status is severely questioned. In an interview, on being asked about the allegations on Ripple, Corey Johnson stated We absolutely are not a security. We don’t meet the standards for what a security is based on the history of court lawa.
The statement was mid when doubts arose about whether U.S. security rules apply to the cryptocurrency system. The U.S Exchange system has left hints that the general laws apply to them and new sales of coins or tokens have been issued a number of subpoenas and directives.
Coinbase has listed four cryptocurrencies: Ethereum, Litecoin, Bitcoin and Bitcoin Cash. Out of these, Ethereum and Bitcoin are not regarded as securities and hence Coinbase had no problem in listing them on its platform for cryptocurrency exchange purposes. Ripple too, was in talks to being added in the Coinbase platform, but the XRP status had nothing to do with the non-addition of Ripple.
Ripple is actually building a payment network particularly for the transaction purpose of students and it is a coin known as XRP or sometimes Ripple. Out of 100 billion tokens of XRP ever created, Ripple owns 60 billion of them.
Sources informed that a spokesperson from Coinbase also had a talk with Ripple Chief Market Strategist regarding the addition into the exchange platform, but regulations were absolutely not discussed and Corey Johnson repeatedly claimed that XRP may not have met the status, but it definitely has nothing to do with security regulations.