News Karnataka
Sunday, February 05 2023

US says 3rd-largest cryptocurrency is a security, not currency

Photo Credit :

San Francisco: In a significant move, the US Securities and Exchange Commission (SEC) has sued both the founder and current CEO of tech company Ripple for raising more than $1.3 billion through an “unregistered securities offering” after selling their cryptocurrency called XRO, which is touted as the third-largest cryptocurrency by market value. There are a number of Forex Brokers in the USA

The lawsuit which said that XRO is a security not currency, claimed that Ripple’s former CEO and founder Christian Larsen and its current CEO Bradley Garlinghouse violated securities laws by selling XRP over a seven-year period starting in 2013.

According to the suit, the “illegal securities offering” created an information asymmetry that let Ripple sell XRP to investors who only knew what Larsen and Garlinghouse chose to tell them, The Verge reported on Tuesday.

“According to Garlinghouse, it’s a virtual currency, which means the SEC has nothing to do with it”.

The SEC has previously ruled that Bitcoin and Ethereum are currencies.

“Also, the Justice Department treated XRP as a currency in 2015, when Ripple settled a suit over its business”.

XRP, however, differs from Bitcoin and Ethereum as the rest of the two cryptocurrencies are created through a “mining” process which is ongoing.

“Ripple started XRP by creating 100 billion units all at once” and this may be why the US SEC has called it security, not a currency.

The pandemic-hit 2020 has seen a meteoric rise in the price of cryptocurrencies.

Bitcoin scaled to a fresh high of $24000 mark this week. So far this year, the largest cryptocurrency has gained over 233 per cent, primarily driven by surge in demand from large investors.

Ethereum (ETH) also peaked at $673 on December 17.

Cryptocurrency exchange CoinDCX on Tuesday said it raised Rs 100 crore ($13.9 million) in its series B round led by Compiling all three rounds of funding this year, CoinDCX has raised close to $19.4 million, to date.

Share this:
Support NewsKarnataka's quality independent journalism with a small contribution.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Leave a Reply

Your email address will not be published. Required fields are marked *

Rohan City Corp
Rohan City Corp

Find the best odds at 10Cric and IPL Betting 2023! Signup today and get up to a 100% deposit bonus.

To get the latest news on WhatsApp