Ripple (XRP) has created a unique spot for itself in the cryptocurrency space. The cryptocurrency has focused on facilitating cross-border bank transactions using the blockchain technology.
Ripple (XRP) experienced an astounding performance in 2017 with its price skyrocketing more than 36,000%. This was because Ripple had an impressive list of more than 100 financial institutions who had partnered with the California based cryptocurrency.
Ripple (XRP) Under Surveillance
However, Ripple has been gaining popularity for coming under the watch of the Security and Exchange Commision (SEC) over its regulatory status. William Hinman, the SEC’s director of corporate finance has announced that Bitcoin and Ether are not securities but that a lot of ICOs fall under the category of securities and will come under the regulatory control of the SEC and relevant securities laws.
Hinman made the statement at the Yahoo Finance All Market Summit in San Francisco on June 14. The crypto market which had been down bounced back recapturing over $4 billion in just one hour.
Although, Hinman explicitly classified both Bitcoin and Ethereum as outside of the definition of securities. News on whether Ripple will be declared likewise has been anxiously anticipated.
However, despite the uncertainty, Ripple has gone on to declare that Ripple as a company is different from XRP. The announcement was made by The Hatch Agency, a PR firm that represents Ripple.
The firm acknowledged that XRP is an “independent digital asset”.
Asides from separating Ripple from the XRP, Ripple is looking forward to partnering with more financial regulators out there. A Ripple executive has said that the scrutiny the industry is receiving from Regulators is welcome. Cory Johnson, Ripple’s chief market strategist while speaking to Fox Business explained that the investors interest is very important and should be protected.
Hurdles on the Way
While the SEC is still contemplating whether or not to name Ripple a security, the price of XRP suffers. It is currently trading at $0.449330 which is way below the $1 mark. On the other, the SEC explained that the Ethereum network is decentralized and has smart contracts and is not a security. It is not sure if Ripple’s technology can be legally used for securities.
Good News for Ripple
IMF’s CEO, Christine Lagarde, on the other hand stated that cryptos do not impose significant threats to the present-day fiat currencies. IMF released a video on its Twitter page endorsing Bitcoin (BTC), Ripple (XRP), and Ethereum (ETH). They claim that these cryptocurrencies could help change the world and give vital solutions to the financial turbulence occurring globally.
IMF is also considering expanding its High-Level Advisory Group on Finance and Technology, to uphold the international organizations. Ripple is part of the 19 member team that will work with IMF’s Interdepartmental Working Group on Finance and Technology. The aim is to study the implications of economic and regulatory developments to finance and technology.
Ripple is also is making major strides as their Head of Research on the Business Development team, Ryan Zagone has being elected to the Federal Reserve’s Faster Payments Task Force Steering Committee. The 16 member team to represent the working group’s numerous stakeholders. The team plans to let the market choose the way out that justifies the market share. The great news is that Ripple is the only Distributed Ledger Technology platform in the committee.
Despite the looming regulations Ripple is moving ahead with its partnerships including making a major mark in Kuwait by partnering with the major banks in the state. Since its endorsement by IMF the value of Ripple and its real world use case has increased and the impact in the financial world is clearly visible.