If you’re a digital asset investor who has been scared of joining the XRP rich list because you don’t know if XRP is a security or not, you’ll be happy to know that the answer to this question is coming soon. After many months of waiting, the digital asset investors in the cryptocurrency space will finally know if XRP is a security and how the XRP security status will affect the XRP price prediction 2019.
How Will The XRP Security Status Affect The XRP Price Prediction 2019?
Ripple, the company behind XRP is facing many lawsuits. Over the years, the San Francisco based firm has tried hard to prove that XRP is not a security but doubts still flood the minds of digital asset investors. Irrespective of what Ripple and investors in the cryptocurrency space have to say, only the United States SEC has the power to clarify the XRP security status.
XRP (XRP) Price Today – XRP / USD
Recently, a rumor broke that the SEC is at the verge of clarifying the XRP security status within the year. Shortly after, investors started liquidating their XRP holdings in a bid to avoid trouble with the SEC when the moment of truth finally comes.
The SEC typically uses the Howey Test as the yardstick for defining the security status of a given asset. However, the XRP security status isn’t easy to define based on the Howey test. Recently, a former executive of the SEC, Michael Didiuk said that XRP is a currency. In his words;
“XRP is a currency. The reason why the Howey Test. It’s a 4-factor test – Investment of money in a common enterprise with the expectation of profits based on the efforts of others.”
These words would have been comforting if they came from Jay Clayton, the current chairman of the SEC or from a United States judge presiding over one of the lawsuits against Ripple. Unfortunately, if Ripple is found guilty in any of the ongoing lawsuits, there is a high possibility that the XRP token will be declared a security by the SEC. The XRP price prediction 2019 will turn bearish as soon as this happens. A major sell-off will bring the price of XRP to record lows.
On the other hand, if the XRP security status is negative, the XRP price prediction 2019 will become positive igniting a bull run that may take XRP above ETH once again and possibly make the token the most demanded in the world. A United States lawyer, Jake Chervinsky, took to Twitter to discuss the XRP security status. In his words;
“Even though we’ve been talking about the Ripple security litigation for almost a year, the case basically just started this week, and it’ll be a very long time – another year or more – before anything exciting happens. After the consolidated complaint is filed, Ripple will *finally* have to submit a substantive response. I expect that will be a motion to dismiss, arguing that the allegations in the complaint–even if true–don’t add up to a violation of the securities laws.”
At the time of writing, XRP was trading at $0.309537. This shows that it is down by 0.85% against the USD and down by 0.66% against BTC with a trading volume of $593,547,968 and a market capitalization of $12,897,165,979.
Do you think the XRP security status will influence the XRP price prediction 2019? Share your thoughts in the comment section.