Peter Brandt: XRP Is a Classic Example of a Security
Peter Brandt, a professional commodities trader, has taken to Twitter on November 11, 2020 to declare that XRP is absolutely a security, and the U.S. Securities and Exchange Commission (SEC) would have since classified it as one if the regulators completely understood the workings of cryptos.
XRP’s Securities Argument Continues
While the United States Securities and Exchange Commission (SEC) have succeeded in crushing numerous cryptocurrency projects in recent times, for selling unregistered securities to the American public, the dreaded financial regulator is yet to solve the Ripple and XRP securities puzzle.
It will be recalled that Chris Giancarlo, the former chairman of the United States Commodities Futures Trading Commission (CFTC), who currently functions as a Senior Counsel at Willkie Farr & Gallagher law firm (Ripple’s legal partners), stated earlier in June that XRP is not a security since its issuers never promised investors returns, coupled with the fact that the altcoin has real utility.
However, in the latest development, Peter Brandt, a seasoned commodities trader who has been in the industry since 1976, has argued that the only reason why the SEC is yet to label XRP as security is due to the fact that the regulator does not fully understand cryptocurrencies.
In his words:
“XRP would have been declared as a security if the SEC understood cryptos. This is a classic case of a market being manipulated by a bag-holder.”
Unending Legal Battles
Interestingly, Brandt’s views have some elements of truth, since Ripple, the owners of XRP has always dumped large chunks of the digital asset on the market; a move that has significantly stagnated the price of XRP and made life miserable for investors.
Of a truth, Ripple’s blockchain solutions for cross-border payments has been steadily gaining traction across the globe, as more than 300 financial institutions are now on the RippleNet platform, however, XRP has failed to replicate the same level of success, as its securities battle drags on.
As reported by BTCManager on November 8, 2020, it appears Ripple is already getting tired of the regulatory uncertainties surrounding its operations in the United States, as the team has launched a new regional headquarters in the Dubai International Financial Centre (DIFC) and has hinted that it may move its U.S. base from San Francisco to a more crypto-friendly jurisdiction in the near future.
At press time, the price of XRP is down by 2.84 percent in the last 24-hours, trading at $0.25, with a market cap of $12 billion, as seen on CoinMarketCap.