The question of whether XRP is a security has been debated for years. Recent SEC moves and IMF findings bring new perspectives to this ongoing issue.
Court Ruling on SEC vs. Ripple Case
Judge Analisa Torres of the US District Court provided a dual determination: Ripple’s institutional sales were deemed an offering of unregistered securities, while retail sales on cryptocurrency exchanges were not.
IMF Report and Its Impact on Cryptocurrencies
The International Monetary Fund recently released an update to its guidelines, classifying cryptocurrencies based on financial obligations. According to the IMF, altcoins, including XRP, may be considered debt-bearing securities.
Ripple's Responses and Expert Comments
Following the IMF report, Ripple CTO David Schwartz argued that XRP does not fit the definition of a utility token. If XRP is considered a utility token or a security by the IMF, then Bitcoin and Ethereum should be as well.
The debate over XRP's status as a security continues, fueled by varying interpretations from regulators and stakeholders in the cryptocurrency space.
