SUPPLEMENTAL CRYPTOASSET UPDATE: Since Dr. Tharp’s latest Cryptoasset Update on December 20th, he has prepared an additional note on unfolding events. To review the December 20th Update, click here.
The Securities and Exchange Commission has decided to sue the cryptocurrency Ripple (XRP) on the grounds that it is a security rather than a coin. This is despite it being recognized as a coin in every other country in the world and it being recognized as a coin since its inception in the US. For example, it was one of the few initial coins sold by Coinbase (a US exchange) when it first started.
We don’t know what is happening here and the SEC chairman plans to step down at the end of the year rather than run out his full term. We don’t know if this is a last-minute effort by Trump (and perhaps some central banks) that will be stopped by the new administration so something else. However, Ripple is expected to defend itself and to move out of the US if it looks like it will lose the lawsuit.
The SEC stance on Ripple could impact other prominent cryptoassets like BTC and ETH in the near future, so this statement is issued as a warning.
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