The crypto community has been worried about the possibility of classifying Ripple as a security according to US laws. The rumors might have started when Coinbase refused to list XRP, which led some to believe that the reason for rejection is the unclear status of the currency.
Cory Johnson, company’s chief market strategist, urged the public to cast all doubts aside:
“We absolutely are not a security. We don’t meet the standards for what a security is based on the history of court law”.
However, U.S. Securities and Exchange Commission insists that US securities laws are applicable to cryptos, and thus should be taxed accordingly. The Commission is increasingly getting interested in sales of digital currencies. Furthermore, U.S. officials are already cautioning exchanges against listing unregistered tokens. Bitcoin and Ethereum, two biggest cryptos to date, are not considered to be securities as of now.
Coinbase, the largest exchange, now lists only 4 coins: Bitcoin, Bitcoin cash, Ethereum, and Litecoin. However, the experts predict that listing new coins will boost the investor’s interest.
A Coinbase official stated that the possibility of XRP re-classification as security wasn’t on the agenda during the meeting with Ripple, but didn’t provide any additional info.