The world’s third-largest cryptocurrency, XRP, has been deemed to have “non-security attributes” by the UK’s Financial Conduct Authority (FCA).
According to a video released by Ripple on the topic of global regulation, the FCA’s July consultation paper compares XRP to Ethereum.
It states: “Tokens may have mixed features that may overlap with the above categories, or change over time. For example, Ether can be used as a means of ‘payment’ (exchange token) on the Ethereum platform, and can also be used to run applications (utility token). XRP has similar features.”
The news will come as a boost to Ripple, with the company currently facing legal action in the US over its alleged sale of an “unregistered security”.
0/ The Ripple securities class action took a step forward this week, as the court set a schedule for roughly the next year of litigation.
Here's an update on where the case stands, what's next, and when we'll answer the question that never dies: "is XRP a security?"
Thread. 👇
— Jake Chervinsky (@jchervinsky) March 22, 2019
Ripple CEO Brad Garlinghouse wrote an open letter to the US Congress last month asking lawmakers to impose regulatory frameworks to ensure innovation in the cryptocurrency and blockchain space isn’t halted.
Aside from regulation, Ripple has been making strides in the fintech space recently by investing $30 million in MoneyGram – a decision which saw MoneyGram’s stock soar by 168% – while Garlinghouse admits that “several deals are in the pipeline”.
The price of Ripple remains at the $0.30 mark – in stark contrast to June when it spiked up to $0.50. The decline has been in line with much of the altcoin market, with Bitcoin managing to regain 70% of the total market dominance.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.