With Bitcoin’s recent plunge, the future of XRP seems more uncertain than ever. But wait, there’s a glimmer of hope! A new report from the European Corporate Governance Institute (ECGI) sheds light on XRP’s legal status, potentially offering a lifeline in these turbulent times. This report aligns with a key U.S. court ruling from last year, and could have major implications for the future of XRP.
Dive deeper to find out what the ECGI report reveals and how it might impact your XRP investment.
In their paper titled “Corporate Governance Meets Data and Technology,” scholars Wei Jiang and Tao Li delve into the world of token offerings. Coming from Emory University and the University of Florida, respectively, they examine the regulatory landscape surrounding fundraising in blockchain-based startups, such as initial coin offerings (ICOs), initial exchange offerings (IEOs), and security token offerings (STOs).
Ripple and its native token, XRP, take center stage in the ECGI report’s examination of regulatory concerns. With a specific reference to the Securities and Exchange Commission’s (SEC) lawsuit against Ripple Labs, the report explores the question of whether XRP qualifies as a security.
Also Read: Here Are The 4 Key Reasons Why Bitcoin, ETH, BNB XRP, Doge Price Crash
A pivotal moment in XRP’s journey occurred on July 13, 2023, when a U.S. federal court made a crucial determination. Contrary to the SEC’s allegations, the court ruled that XRP is not classified as a security when traded on public exchanges. However, it left open the possibility of a different classification for direct institutional sales.
Legal expert Bill Morgan provides valuable insights into the implications of the ECGI report. While acknowledging XRP’s non-security status, Morgan highlights the nuanced nature of its regulatory compliance. Despite not being labeled a security, XRP’s involvement in transactions subject to securities laws remains a significant consideration.
XRP’s journey through the regulatory landscape remains fraught with uncertainty. While the ECGI report provides some clarity regarding its legal status, the finer details of compliance continue to shape its trajectory.
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