Some digital assets have been given a pass, known in the crypto world as the “Ethereum free pass.” Other digital assets, XRP for instance, have had their entire market disrupted due to a lawsuit that the SEC brought against the “minting” company, Ripple.
Ripple minted a total supply of 100 billion XRP in a project they started over a decade ago. Jed McCaleb broke off from Ripple and started Stellar. Stellar produced the digital token known as XLM.
The comparability of XRP and XLM in terms of their functionality for providing real life solutions to real life problems is well known. They provide on demand liquidity for financial markets around the globe. That’s a big deal.
Why then, would the United States government file a lawsuit against one of these two companies alleging the sale of unregistered securities years after the sale of the the digital token began? We know that Ripple sought guidance from the SEC then, yet none was provided.
This lawsuit began with Jay Clayton, a President Trump appointee and continues to this day with Gary Gensler, a Biden appointee. This lawsuit is bigger than politics. It is about money. Global amounts of money.
All opinions are my own and should not be considered investment advice. I am doing this to provide entertainment.
#sec #ripple #stellar #crypto #digitalasset #ethereum #bitcoin