Dr.T, a prominent member of the XRP community challenged Ari Paul in a Twitter thread about XRP not being a security. Here, Dr.T stated that XRP is not a security because the digital asset was created before Ripple. Furthermore, Ari Paul and a few others engaged in an intense argument on the subject. The original tweet by Dr.T stated:
“I just came across this. I noticed that @AriDavidPaul had liked the tweet as well. You’re aware of these facts I will let your followers know as well: XRP was created before Ripple, so it can’t be a security. Merry Christmas & Happy Holiday season Mike. “
Here, Paul replied by writing that Dr.T needs to be careful with giving “inaccurate” legal advice on the web as he could personally be held liable for it. He also stated that even if Ripple was created five years after XRP, XRP could still be a security. Furthermore, according to Howey Test, which is a test used by the Securities and Commission Exchange [SEC] to check if a digital asset is a security or not, the timing of Ripple incorporation is not an eligible determinant.
He continued to convey that many in the cryptocurrency space have been posting several screenshots of early Ripple PR, Twitter posts and website captures where they created XRP. By this, Paul negated the argument of XRP being born before Ripple. He then opined boldly, indicating that Ripple might have committed early fraud if the claims related to XRP being created before Ripple are true.
To this, ecent, another member of the XRP ecosystem joined the Twitter thread to voice his opinion. In his tweet, he brought the point of “XRP once being a security, but is not any more”. He wrote:
Disregarding for a second the clarity provided by other countries on this topic…Im curious whether the “XRP is a security” camp will be satisfied if the SEC were to say “XRP was once a security but now isn’t” or is blood the only thing that will satisfy those opposed to it?”
By now, the discussion had turned into a rebuttal session where it was Paul’s turn now. Here, he stated that the SEC enforces the regulations. At present, the definition of a security is defined by the 1933 and 1934 Securities Acts Legislation and interpreted by the courts. According to him, SEC’s opinion carries much weight and pragmatism at this hour.
ecent reverted to the above and wrote:
“Thanks but that wasn’t my question. Im curious if in your opinion the CT “XRP is a security” camp will be satisfied with “XRP was but is no longer a security” from the SEC. Will that be satisfactory to you / others in your opinion or will nothing short of criminal charges work?”
According to Paul, his interpretation of such a statement by the SEC will mean what it exactly communicates: a statement of intent by the SEC that is not likely to be prosecuted. He added that such a statement would probably support civil lawsuits.
In his next post, he stated that the key to winning the race is purely intellectual honesty and general clarity in the cryptocurrency space. In his words:
“I don’t like “gaslighting.” It’s up to regulators and judges to enforce laws and regulation as they will.”
On the contrary, ecent believes that intellectual honesty is important indeed. However, he opined that the “XRP is a security” argument is not an honest one, in intent or perspective. He also mentioned that according to the legal clarity established abroad as well as the attempts that are being made to frame regulatory infrastructure for cryptocurrencies, XRP is clearly not a security.
This statement by ecent took a deep hit when Ari Paul re-framed some of the points expressed by the former. Here, Paul questioned the stance of the US on XRP being a security. The tweet read:
“I don’t understand. Are you saying that XRP was a security, but you’re hoping that in other countries it’s not and/or that the US will change its laws to retroactively make the crime of selling an unregistered security not a crime? You’re saying XRP is a US security?”
The debate continued as both the parties stuck to their arguments. Many other members of the cryptocurrency space and XRP in specific joined and submitted their comments on the subject.
Subscribe to AMBCrypto’s Newsletter
Facebook’s entry a positive signal to blockchain & crypto markets, claims Ripple’s Brad Garlinghouse
As the influx of new players into the crypto-ecosystem grows, the industry has come a long way from its inception a decade ago. The industry has forced mainstream institutions such as Facebook and JP Morgan to join the race. While the world speculates on Facebook’s next move as a global power, in-house competitor Ripple is on a partnership spree to ensure a comfortable XRP market.
To clear out the FUD, Ripple CEO Brad Garlinghouse discussed the intent and roadmap behind the recent MoneyGram-Ripple partnership. While enabling XRP-powered money transfer services, Ripple’s $30 million investment seems to be part of a game plan for increased adoption.
Garlinghouse shared his optimism for the move after his company’s beta network recently matched Western Union’s performance for cross-border payments. Further, he is certain about Ripple’s ability to improve MoneyGram’s infrastructure by eliminating the traditional pre-funding process. Garlinghouse added,
“Our (Ripple’s) product allows companies to avoid pre-funds and just shoot the payments in real time. That’s a massive savings in terms of efficiency and capital costs.”
As a result of this partnership, Ripple will hold a 6% – 10% share in MoneyGram, helping the crypto giant’s vision to enable mass adoption. Further, the CEO correlated the development with the company’s ultimate roadmap. He said,
“We will continue to build out and expand the number of corridors. We work with over 200 banks and financial institutions today.”
Garlinghouse also shared Ripple’s contributions toward enabling liquidity in the Mexican and Philippines market. Although the XRP market stands as one of the biggest disruptors in the cryptospace, Garlinghouse applauded Facebook’s recent Libra initiative. He commented,
“It’s incredibly positive signal to the overall blockchain and crypto market to have a player like Facebook leaning in.”
While a positive sign for the crypto-market, it will be interesting to see the direction Facebook’s crypto-initiative takes, which is currently speculated to be pointing toward a consumer-oriented payment system.
Subscribe to AMBCrypto’s Newsletter
Ampleforth could help create next-gen synthetic commodities for portfolio diversification, claims Blockfyre report
Is Facebook’s Libra a fiat in crypto’s disguise?
Bancor reacts to increasing regulatory uncertainty; will disable conversion functionality for U.S users
Facebook’s Libra raises money laundering concerns associated with crypto again
Facebook’s Libra ‘sounds an awful lot like Proof-of-Stake’ and will ‘run into Ethereum’s problems,’ claims Jameson Lopp
Bitcoin [BTC]: #DropGold campaign gets called out for being ‘Bitcoin cartel’
Tron’s [TRX] Sun Network testnet goes live as Justin Sun places bet on its ‘unlimited scaling capacity’
Gaming giant Ubisoft takes its first steps towards bridging the gap between crypto and gamers
Tron join hands with LATOKEN to become an IEO payment token
Convincing Warren Buffett to buy cryptocurrency in just three hours is unrealistic, admits Tron’s Justin Sun
XRP closes 48 million ledger; XRPL Labs introduces solution for users’ destination tag problem
8 crypto exchanges were shut down in 2019; how does that affect the overall crypto space?
Bitcoin up for a long run as it re-visits an old bullish pattern
Bitcoin exhibits similar trends to pre-2017 bull run era; can history repeat itself?