SEC says XRP is a security, Ripple proposes new uses for XRP Ledger
The announcement was made as the firm and its co-founders stand in the middle of a lawsuit with the SEC over an alleged illegal securities offering. The discussion turned to whether XRP is a security or not.
NFTs became the new sensation within the crypto ecosystem but concerns over carbon emissions have led many, with Elon Musk’s Tesla at the helm, to rethink their crypto positions. In the meantime, Ripple has doubled down on its green tech claims.
RippleX’s NFT project intends to combat high gas fees for trading and mint fees for NFTs as the technology experiences growing pains. By integrating NFT marketplaces on the open-source, permissionless, and decentralized blockchain XRP Ledger, both buyers and sellers will experience a more cost-effective and overall pleasant experience when operating in the NFT space, the company announced.
The integration also claims to reduce carbon emissions: “Because the XRPL uses a novel consensus process for validating transactions, it consumes negligible amounts of energy and is 120,000x more efficient than proof-of-work networks. Building on the XRP Ledger provides developers a unique opportunity to run more sustainable NFT apps and marketplaces while eliminating a heavy burden for the planet.”
Ripple has also announced a private CBDC ledger for central banks. This allows them to develop, issue, and manage their own secure, controlled, and flexible digital currencies. More than 80% of central banks are actively exploring some form of sovereign-backed cryptocurrency.
France’s central bank, Banque de France, has openly considered XRP for the digital euro.
Both announcements on NFTs and CBDCs were made as the firm and its co-founders stand in the middle of a lawsuit with the Securities and Exchange Commission over an alleged illegal securities offering. The discussion turned to whether XRP is a security or not.
XRP is the digital asset native to XRPL, with the latter being an open-source, distributed ledger.
FinanceFeeds covered two bombshells dropped by the Judge consenting on XRP’s currency and utility value. With currencies and securities being two different things, the SEC’s argument that Ripple is security may lose its credibility.
It seems that Ripple may be pushing for a Summary Judgement on its fair notice affirmative defense. A win wouldn’t clarify XRP’s status, but no one could be sued after that as no one had Fair Notice from the SEC.