Trusted

Exclusive BIC’s Crypto Video News Show: Will XRP Get Relisted on Exchanges?

2 mins
Updated by Anirudh Tiwari
Join our Trading Community on Telegram

In Brief

  • Ripple could be making a comeback, in light of its recent troubles with the SEC.
  • A remark from an SEC attorney could potentially see XRP relisted on crypto exchanges.
  • Ripple hopes XRP could play the role of a neutral bridge currency for forthcoming CBDCs.
  • promo

In this episode of the BeInCrypto video news show, host Jessica Walker discusses the recent news about Ripple. Its native XRP token could potentially be relisted on crypto exchanges again and could become a bridge currency for central bank digital currencies (CBDCs).

The most recent hearing of Ripple’s case with the US Securities and Exchange Commission (SEC) was held on March 19. During the session, the SEC attorney made a remark, which could result in XRP being relisted on exchanges. This development would be fortunate for the company, as they feel its token is an ideal bridge currency for forthcoming CBDCs.

Watch BIC’s Latest Crypto Video News Show Here:

Judge Leaning Towards XRP

In December, the SEC filed a case against Ripple and executives Christian Larsen and Brad Garlinghouse. They cited Section 5 of the Securities Act of 1933, which prohibits the sale of unregistered securities. This is what the SEC asserts is what Larsen and Garlinghouse did.

During the hearing on March 19, Magistrate Judge Sarah Netburn asked SEC attorney Jorge Tenreiro about the application of Section 5. “So, presumably every individual in the world who’s selling XRP would be committing a Section 5 violation,” she queried. Tenreiro clarified, saying that Section 4 of the Act was an exemption provision.

“If these are transactions by people in the market, they’re exempted by statute,” he said. “Under Section 4, only Ripple and affiliates of Ripple can have sold XRP illegally,” he continued. This could set a precedent that would enable exchanges to begin listing the token again.

Judge Netburn also called into question the argument that the asset is a security. “My understanding about XRP is that not only does it have a currency value, but it has a utility, and that utility distinguishes it from Bitcoin and Ether,” she said. As currencies and securities are distinct, the SEC’s argument that XRP is a security could be losing its credibility. 

XRP as a Neutral Bridge Currency

This could bode well for Ripple, as the company feels that XRP could be an ideal neutral bridge currency for CBDCs. Recently, Ripple released a whitepaper entitled ‘The Future of CBDCs.’ The whitepaper explains why central banks should issue CBDCs and describe issues they would potentially have to overcome.

Because central banks will have their own priorities when establishing a CBDC, they may take a different approach for each. However, CBDCs will still need to be exchanged across the global market. Ripple says this interoperability will require open payment protocols and neutral bridge assets. Companies have already used XRP for foreign exchange, so Ripple explained that XRP would be a natural choice to be a neutral bridge asset. This could see XRP become a standard global cryptocurrency for CBDC exchange.

Top crypto projects in the US | October 2024
Coinbase Coinbase Explore
Coinrule Coinrule Explore
3Commas 3Commas Explore
Uphold Uphold Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024
Coinbase Coinbase Explore
Coinrule Coinrule Explore
3Commas 3Commas Explore
Uphold Uphold Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

photo_Nick.jpg
Nicholas Pongratz
Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage.
READ FULL BIO
Sponsored
Sponsored