• Ripple returns 700 million XRP to its escrow account, leading to increased liquidity in the XRP market.
• SEC Chair Gary Gensler argues that all digital assets apart from Bitcoin are unregistered securities.
• Famous crypto lawyer John E Deaton analyzed the Howey test on digital assets and explained that XRP, ETH, and any other altcoin are not securities.
Ripple Returns 700 Million XRP to Escrow Account
The XRP community is ecstatic over the recent price breakout from the macro logarithmic downtrend. The sixth-largest digital asset surged to a ten-month high of about $0.58 last week but has since retracted to trade around $0.51 on Monday. However, the decline is largely due to the 300 million XRP sold by Ripple in its monthly escrow release. According to on-chain data, Ripple returned about 700 million XRP to the escrow account over the weekend. Ripple uses XRP sales to incentivize On-Demand Liquidity programs and its RippleNet customers.
SEC Chair Argues All Digital Assets Apart From Bitcoin Are Unregistered Securities
United States SEC Chair Gary Gensler argued during a recent hearing at the House Appropriations Subcommittee on Financial Services and General Government that all digital assets apart from Bitcoin are unregistered securities. Gensler explained that almost all crypto assets have a group of people working towards their success, thus qualifying as a security.
John E Deaton Analyzes Howey Test on Digital Assets
Famous crypto lawyer John E Deaton analyzed the Howey test on digital assets and explained that XRP, ETH, and any other altcoin are not securities despite undertaking ICO during their early stages. He said when an investor buys an asset directly from a company it qualifies as a security but if they buy it from another buyer then it does not qualify as one anymore because there is no direct ties between them and company issuing it anymore . This means that if investors buy cryptos from exchanges like Coinbase then they should not be treated as a security by SEC .
XRP Market Benefits From Increased Institutional Trading
The outcome of the Ripple vs SEC lawsuit significantly impacts XRP’s future growth prospects. The market benefits from deeper liquidity due to increased involvement from global institutional traders who are confident enough in their investments regardless of legal matters surrounding them . This means more trading opportunities for retail investors who can capitalize on institutional buying activity .
In conclusion , we can see how important it is for investors to understand how different regulations affect cryptocurrencies such as XRP , ETH , and any other altcoin in order for them make informed decisions regarding their investments . Furthermore , deep liquidity provided by institutional traders increases chances of successful trades made by retail investors even further increasing overall market sentiment towards these coins .