Scott Chamberlain – a former US lawyer and co-founder of EvernodeXRPL – thinks the main obstacle that stops XRP’s price from surging is the SEC’s claim that the token classifies as security.
On the other hand, Ripple – the entity which issues the coin – has maintained that XRP should be treated as a commodity.
- In a recent Twitter post, Chamberlain opined that XRP’s price suppression is not caused by the US SEC’s allegation that Ripple sold assets worth more than $1 billion in 2013 but by the regulator’s “crucial distinction” that the token is a security.
I think a crucial distinction is SEC has alleged “XRP is a security” so the entire chain is threatened. If they only alleged Ripple sold XRP as part of an Investment Contract then there would be no threat, no price suppression – and no case because it would have settled long ago https://t.co/2bKVuuydiv
— Scott Chamberlain (@scotty2ten) April 6, 2023
- Prior to Chamberlain’s reaction on the social media platform, the financial expert Fredo Ayala said up to 5 million people depend on the lawsuit between Ripple and the SEC since they have invested in XRP and are expecting a possible price expansion.
- The legal battle started in 2020 when the watchdog accused the blockchain organization of raising substantial funds through the sale of XRP tokens in an unregistered security offering to investors in 2013.
- Ripple’s executives have repeatedly claimed over the years that coin should be viewed as a commodity. Chief Technology Officer David Schwartz recently explained why:
“XRP is a raw good that trades in commerce, and one XRP is treated as equivalent to every other XRP. That’s pretty much the definition of a “commodity.” No part of XRP’s value comes from anyone else’s legal obligations to XRP holders.”
- For his part, Gary Gensler – Chairman of the SEC – said the only digital asset the agency is willing to classify only as a commodity is bitcoin.
- Despite the uncertainty of the lawsuit’s outcome and the lengthy process, XRP’s valuation has recently headed north. It currently trades at approximately $0.51, or a 34% increase compared to the figures 30 days ago.