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XRP is defined as a pre-mined currency, according to “Statements of Facts and Violations” in the Deal with US Treasury
Editorial Team

An important question could be if an agreement between Ripple Labs and the US Treasury Department will convince the SEC that XRP is not a security.

In 2015, Ripple signed a settlement agreement with the Treasury’s Financial Crimes Enforcement Network (Fin CEN), paying a $700,000 fine for “selling its virtual currency, known as XRP, without registering with Fin CEN, and by failing to implement and maintain an adequate anti-money laundering (AML) program designed to protect its products from use by money launderers or terrorist financiers.”

Since then Ripple has altered its business to ensure future compliance, and a paragraph within the agreement could have an impact on the debate on how XRP should be classified, according to dailyhodl.com.

The “Statements of Facts and Violations” in the agreement defines XRP as a currency that was pre-mined prior to its distribution.

According to dailyhodl.com’s report, Ripple is currently facing two class action lawsuits that state XRP is a security controlled by the company. They are pushing back and hiring two former SEC officials to represent it in court.

A spokesman at Ripple told CoinDesk in response to the lawsuits:

“This is just another example of an extortionist bringing forth an opportunistic suit that lacks merit. We feel confident that the claims regarding XRP are completely unfounded both in law and fact.”

However, a spokesperson at the US Securities and Exchange Commission just few days ago declared that Bitcoin and Ether are not securities, making no mention of XRP.

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