Ripple (XRP) seems to be showing serious concerns about its regulatory status as the company is constantly in talks with SEC on this matter.
In the crypto industry, the most common regulatory discussion is whether a digital asset has legal status or not and whether a digital asset is commodity or security depends on how much it is regulated.
XRP’s regulatory status is still unknown
The regulatory status of XRP is still unknown. US regulators have regarded both the world’s first-ranked digital asset bitcoin and second-ranked Ethereum as commodities.
But the third-ranked cryptocurrency Ripple (XRP) has yet to confirm its regulatory status whether or not the asset is commodity or security.
Ripple talks to SEC for this matter
Ripple is now taking into account this regulatory matter. A closely affiliated company with the asset known as Ripple Labs is working on this issue.
The Chairman of the Commodity Futures Trading Commission (CFTC) Heath Tabert talked about the regulatory status of XRP in an interview with Cheddar. And after this, the CEO of Ripple has passed his comment on Ripple’s regulatory status.
Ripple’s CEO Brad Garlinghouse says in Switzerland’s event that we are in talks with SEC for a period of time and that educating of regulators is a “really constructive process”. As he commented:
We’ve been working closely with the SEC over the last year or so to really think about which falls in what box because I think if I hear anything from market participants it’s that we really need clarity. That without clarity it’s really difficult to figure out how these will eventually be regulated.
CEO of The Block Mike Dudas has presented two presentations that suggest that XRP is a security. These presentations provided a number of posts and comments from Ripple. The Ripple’s executives’ comments are: “the company created XRP, and that the company and its agents are selling the asset in excess of need for profit”.