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.
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.