Are you curious about the recent developments with SEC and XRP? Well, you are in the right place! In today’s blog post, we will be discussing the leaked email confirming that XRP is “not a security” according to SEC. Additionally, we will touch upon Microsoft’s use of Ripple and the possibility of Ledger’s demise. So, let’s dive in and explore the latest updates in the world of cryptocurrencies!
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SEC LEAKED EMAILS CONFIRM XRP IS “NOT A SECURITY” ⚠️
In the world of digital currency, there is often a lot of speculation as to which digital assets are considered a security and which ones are not. One cryptocurrency that has been facing this question for quite some time is XRP. However, a recent leaked email from the US Securities and Exchange Commission (SEC) seems to confirm that XRP is not a security.
Background on XRP
Before delving into the leaked emails, it’s essential to understand what XRP is. XRP is a digital asset created by Ripple, a San Francisco-based company. XRP is used in the Ripple payment system, which allows users to transfer funds around the world at a reduced cost and in less time than traditional bank transfers. The XRP token is the native asset of the Ripple network.
The SEC Email Leak
On Friday, September 10, 2021, the SEC filed a letter to Federal Judge Analisa Torres requesting summary judgment against Ripple Labs and two of its executives on the grounds that they conducted an unregistered securities offering. However, over the weekend, a leaked email emerged allegedly from the SEC that appears to be an internal communication sent on January 8, 2021. The email contained a transcript of a December 22, 2020 phone call between SEC officials and a third party whose name was redacted.
According to the email, when asked whether XRP was similar to Bitcoin or Ether, the SEC officials answered that XRP was different as it was created with a different business model and intended to be a bridge currency used by financial institutions. They added that unlike Bitcoin or Ether, XRP was not mined. When asked if XRP was considered a security, the SEC officials answered, “no comment.”
Reaction from Ripple and the Crypto Community
The leaked email caused a stir in the crypto community and generated mixed reactions. Ripple’s CEO, Brad Garlinghouse, tweeted the next day that the email was “yet another example of the SEC’s selective disclosures and lack of due process.” He added that Ripple had consistently stated that XRP was not a security and hoped the court would hold the SEC accountable for “overreach and regulatory abuse.”
Meanwhile, the price of XRP surged by around 9% on the news, reaching a high of $1.33 on September 13, its highest level since May 2021. However, XRP’s price did not sustain its gains and dropped back down to $1.03 on September 16.
Microsoft Utilizing Ripple, Ledger Dead?
In other news, it was recently reported that Microsoft is utilizing Ripple’s Interledger Protocol (ILP) to allow Minecraft users to make in-game purchases with XRP. This partnership is a significant step towards mass adoption of digital currencies and using them as payment mechanisms in everyday transactions.
Additionally, there are rumors circulating in the crypto community that Ledger, a popular hardware wallet provider, suffered a data breach that exposed personal information of over a million customers. The company has denied the rumors, stating that although a database containing e-commerce information was accessed, no sensitive information such as seed phrases or private keys had been compromised.
The Future of XRP
Only time will tell how XRP’s legal battle with the SEC will play out, and whether the leaked email will have any impact on the court’s decision. However, the email seems to confirm what Ripple has been saying for quite some time, that XRP is not a security and should not be treated as such.
Additionally, partnerships like the one between Microsoft and Ripple are steps towards mass adoption of digital currencies, which can only benefit XRP in the long run.
5 FAQs on XRP and the SEC Email Leak
What is XRP?
XRP is a digital asset created by Ripple, used in the Ripple payment system.
What is the SEC email leak about?
A leaked email from the SEC appears to confirm that XRP is not a security.
What has been Ripple’s stance on XRP being a security?
Ripple has consistently stated that XRP is not a security.
How has XRP’s price reacted to the news of the SEC email leak?
XRP’s price rose by around 9% on the news, but the gains were not sustained.
What partnerships are Ripple forming to promote XRP adoption?
Ripple is partnering with Microsoft to allow Minecraft users to make in-game purchases with XRP.