SEC makes necessary choice on ICOs: what does this imply for Ripple, XRP and the digital asset investor? XRP Wealthy Checklist: SEC Makes Essential Choice About ICOs: What Does This Imply for Ripple, XRP and the Digital Asset Investor? XRP Information immediately
Last year, in the wake of the ICO frenzy following the 2017 Bitcoin bull run, U.S. financial regulators, the Securities and Exchange Commission (SEC) began investigating initial coin offerings (ICOs) and other cryptocurrencies to make sure they weren’t Securities trades. Members of the cryptocurrency community, especially the XRP rich list, were concerned about the XRP security status. This is because, while XRP is a cryptocurrency, it has some similarities with a security object. Any digital asset investor who wants to avoid having issues with the SEC needs to find a way to verify whether or not XRP is a security in order to avoid severe penalties. Even the exchange of cryptocurrencies became particularly cautious. However, the recent decision on ICOs may change the game for XRP, Ripple, and any digital asset investor who hasn’t been added to the XRP rich list for fear of the SEC.
Is XRP a Security? XRP security status may not be a big deal anymore
While many digital asset investors believed the SEC would punish the failed ICOs with jail terms and fines, they seem to be just letting go of them, according to the latest report on The Bitcoinist. In lieu of jail time, the SEC has ruled that the ICO projects that violated its guidelines by offering unregistered securities will have to pay a fine and refund their investors. Some of the projects examined were completed without payment of a fine.
XRP (XRP) Price Today – XRP / USD
One of the actors involved in an affected ICO project, Airfox, Victor Santos, stated that his project had been fined and that they were ready to comply with the regulations. Airfox was asked to return the money paid with interest and pay a fine of approximately $ 250,000. The company has also been asked to register its tokens as securities if they want to keep operating.
How does this relate to the situation of the XRP SEC? Is XRP a Security? What would the consequence be for Ripple? Well, Jay Clayton, the chairman of the SEC, has said that many of the existing ICOs are unregistered securities. Aside from Ethereum and Bitcoin, which were deleted last year, many other cryptocurrencies are considered securities. The one of the most worrying for the cryptocurrency industry right now is XRP.
Is XRP a Security? What does the SEC’s decision mean for XRP?
In the cryptocurrency space, there has been a lot of tension over XRP security status. A few days ago, many members of the XRP rich list started liquidating their tokens out of fear. Many digital asset investors believed that the SEC would shut down Ripple and wipe out the XRP token if XRP were classified as a security. Any exchanges that XRP is listed on would suffer fatally even for trading unregistered securities, we thought.
With the SEC’s recent decision regarding ICOs, tension over the XRP security status will ease. This is because even if the XRP token is classified as a security, the punishment may not be as severe as we thought it would be. Ripple may be asked to pay a fine and make some adjustments to become a government complaint. This may discourage some investors at first, but it would blow off after a while. There is no need to panic.
Are you on the XRP rich list? Have you ever wondered what would happen if the SEC decided to consider XRP as a security? Do you think a request for a fine from ICOs means the SEC will just let them go? Share your thoughts in the comment section.
Max writes on blockchain projects and regulation with a special focus on the US and China. He came to Smarterum after years of writing for various media.