During the SXSW session last Thursday, Ripple’s CTO, David Schwartz, revealed that the team believes XRP is not security .
RRP, the basis of Ripple’s products, is a technology created by several developers, including Schwartz, from 2011 to 12 years. These developers will eventually donate part of their own XRP to Ripple for ecosystem development.
A common topic of thinking about treating XRP as a security is that two of these developers (Jed McCaleb and Chris Larsen) are also co-founders of Ripple. McCaleb and Larsen “donate” themselves the tokens needed to raise Ripple’s funds and sell them to the public, that is, in a broader sense ICO .
The ultimate agency to determine if the cryptocurrency is a security is the US Securities and Exchange Commission (SEC) , and the current view of the agency is that ” all cryptographic assets sold under ICO are considered securities. ” It has become.
The SEC uses a standard called “ Howey Test ” to determine if a product is a security. This is simply expressed as “the product that the buyer (investor) expects for future profit” corresponds to the securities.
The Hawi test is disrupting the industry as a rule that is difficult to apply to cryptographic assets. On the other hand, the SEC recognizes that “the case where tokens that were considered to be securities at ICO no longer are considered to be securities ” may occur.
This is because, among the cryptographic assets (especially utility tokens) that were gathering speculation at the time of ICO, those that became sought for purely ecosystem maintenance as the early speculation boom has passed are no longer securities. It is a view that there is not.
However, it is likely that Ripple and many other blockchain companies fear that they will be suddenly suspended due to the fact that they have not registered securities in the past. Several companies have already been seized by the SEC for conducting ICOs without registering as securities. However, the SEC has not yet decided whether to consider XRP as a security. About this Schwartz
“The SEC reports what we do on a weekly basis, so suddenly, if we are told that what we did four years ago is completely illegal. I think that’s unfair. “
“The SEC should eliminate this uncertainty (with respect to howy tests and cryptographic assets). Even if inefficient laws are clear rules are clear, we can not know what they are doing illegally It’s better than me . “
Article Source: David Schwartz Interview SXSW2019
Author: Yuya 【Coin Desk News】 – Source Post: https://crypto-times.jp/ripple-cto-xrp-not-security/
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