US CFTC Chairman: Ripple (XRP) may be considered a security by the SEC

US Commodity Futures Trading Commission (CFTC) Chairman Heath Tarbert said in a recent interview with Cheddar that XRP, currently the third-largest cryptocurrency by market capitalization, could be classified as securities by the Securities and Exchange Commission (SEC) . However, Tarbert said the situation is still unclear and the token can still be considered a commodity and therefore falls under the jurisdiction of the CFTC.

puzzle-3223941_1280

Source: pixabay

"Part of the problem is that we share jurisdiction with the SEC. If it is securities, it is their jurisdiction. If it is a commodity, it is our jurisdiction. Therefore, we have been working closely with the SEC for the past year or Really consider which belongs to which box. "

Tarbert said that Bitcoin (BTC) and Ethereum (ETH) are the only digital assets under the jurisdiction of the CFTC. Regulators allow the development of futures markets, giving investors the opportunity to securely purchase any of the two approved digital assets recognized as commodities.

Tarbert pointed to several advantages of futures, such as price discovery, hedging, and risk management, which help legitimize fledgling markets.

An important court hearing against Ripple

It is reported that Ripple Labs is expected to face another court hearing on XRP securities litigation on January 15. If the judge rejects Ripple's motion, the case will continue.

Ripple Labs was charged in court in 2018 on suspicion of illegally profiting from XRP sales. If the SEC finally identifies such tokens as illegal securities, it will be subject to strict regulatory scrutiny.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Number said | In the first half of 2019, blockchain private placement financing of 11.851 billion yuan exceeded 60% of funds invested in the US market

As the cryptocurrency undergoes the “Bear Bull” conversion, the blockchain private equity financing mar...

Opinion

Data Perspective on the South Korean Cryptocurrency Market Strong Growth of CEX and Obsession of Retail Investors with Altcoins

We will study data from centralized exchanges in Korea and explore the characteristics and trends of Korean investors.

Blockchain

Data decreased slightly, rumors triggered a single-day net outflow of Binance

From the data of the past week (02.17-02.23), compared with the previous week (02.10-02.16), all the data have slight...

Blockchain

Why do institutional investors use the exchange Bakkt as the gateway to the world of encryption?

Bakkt, the cryptocurrency exchange initiated by ICE, the parent company of the New York Stock Exchange, has officiall...

Blockchain

Behind 106 market cases, we discovered the impact of the BTC spot market structure on price discovery

(Onion Note: "Price Discovery refers to the process by which buyers and sellers reach a transaction price for th...

Blockchain

Data report: Which exchanges are the most used in currency, fire, and OKEx?

(Image courtesy of 2Bitcoins.ru ) The Blockchain Transparency Institute (BTI) recently released a market monitoring r...