Arrington XRP Capital Fund received a subpoena

A total of 80 firms have already got SEC subpoenas
03 March 2018   548

It is reported by CNBC that Michael Arrington's $100 mln worth cryptocurrency hedge fund received a subpoena from US SEC on Friday, March 2. This fact is yet another confirmation of the ongoing scrutiny in the cryptocurrency industry. Despite the subpoena nature, this news is not disrupting at all as long with Arrington's fund, other funds receiver the same subpoenas. The regulations are clearly on the way, and TechCrunch founder stressed his willingness to comply to the coming regulations,

That's fine. They [the SEC] just have to figure out what they want. They need to set up rules so we can all follow them, and the market is begging them for that.

 

Michael Arrington

Founder, XRP Capital Fund

But for the time being the content and the spirit of the regulations are yet to be known. And the stalling is not helping at all. The lack of details on the crypto-specific regulations has led some US based projects to move out of the country elsewhere - a rather unbecoming sign.

It's a shame: the U.S. has just frozen itself.

 

Michael Arrington

Founder, XRP Capital Fund

To remind the readers, earlier in February SEC has declared all ICOs to be regarded as securities.

Great Ripple Debate to Gain Momemntum

Some believe that the decision of the US Financial Crimes Network, issued in 2015, allows classifying XRP as a tool that can not be controlled by the SEC
18 June 2018   125

Last week, a representative of the Securities and Exchange Commission (SEC) acknowledged that bitcoin and Ethereum could not be recognized as securities because of their decentralization and would not be governed by relevant laws. However, the question of whether the XRP is a security remains open. This is reported by Bitcoinist.

Some believe that the decision of the US Financial Crimes Network (FinCEN), issued in 2015, allows classifying XRP as a tool that can not be controlled by the SEC.

@codetsunami Twitter
@codetsunami Twitter

During the trial in 2015, FinCEN accused Ripple Labs of violating the banking secrecy law, stating that the startup acted as a financial services company without registration with FinCEN. In addition, Ripple at that time did not use the proper practices to prevent money laundering.

Subsequently, the conflict was resolved, the criminal prosecution was terminated, and Ripple was fined $ 450,000. More importantly, the sale of XRP was allowed. Ripple Labs also made the necessary changes to its own protocol to ensure transparency of transactions. Prosecutor Melinda Haag, commenting on this case, said that she hopes that Ripple will set a standard for future investment proposals in the field of digital currencies.

FinCEN already signed an agreement with Ripple Inc. allowing them to continue their XRP sales. If XRP is an unlicensed security then FinCEN now has to explain why they signed an agreement allowing the sale of said unlicensed securities. Never going to happen. XRP isn't a security. These are the agreed facts of the settlement where FinCEN agrees with prejudice that XRP is a currency and therefore not a security. This debate is over.
 

Richard Holland at Twitter

Not everyone agrees that FinCEN's decision will prevent the SEC from recognizing XRP as a security, but the existence of a precedent is undoubtedly an important factor in regulation.