Popular crypto trader Peter Brandt thinks the SEC (Securities and Exchange Commission) should move to settle the debate about XRP as a security. In his opinion, XRP should be classified as a security. Peter made his views known in a recent tweet.
Ripple Battling Against It
For years, Ripple has been battling against the “securities” tag on XRP, maintaining that XRP is independent of Ripple and that buying XRP doesn’t amount to owning any shares in Ripple. Ripple maintains that XRP has utility in easing cross-border payments. Indeed, Ripple has scored some small victories in this endeavor. Back in October, the company won a lawsuit in which XRP was argued to be an unregistered security.
Ripple has also made a few friends in the high ranks. During his days as the Chairman of the SEC, Christopher Giancarlo defined Ethereum (ETH) and Bitcoin (BTC) as commodities. In June, he declined to classify XRP as a security. Christopher now works for a law firm that represents Ripple.
According to Peter Brandt, the reason why the SEC hasn’t classified XRP as a security is that the agency doesn’t seem to understand the crypto industry.
Brandt: Ripple Is A Bag Holder
Going on, Brandt referenced Ripple, calling the company a “bagholder” that manipulates the market. For starters, the bulk of the XRP tokens minted are owned by Ripple. Some time back, Peter Brandt said XRP is a manipulated scam. The fact that Ripple owns close to half of the XRP makes it the ultimate bag holder with the power to shape the market.
According to Peter, Ripple has survived by pulling strings. Case in point is probably the point where the ex-chairman of SEC, who now works for a law firm engaged with Ripple, was instrumental in making sure that XRP wasn’t classified as a security.