- The Commodity Futures Trading Commission (CFTC) recently filed a lawsuit against the world’s biggest digital currency trading platform, Binance.
- Ripple fans are concerned that this could have drastic effects on XRP, the platform’s native token.
- Ripple executives argue that XRP is a commodity and should not fall under the jurisdiction of the SEC.
Not long ago, it was announced that the Commodity Futures Trading Commission (CFTC) had filed a lawsuit against Binance, the biggest and most popular digital currency trading platform in the world. There are many Ripple fans out there who are concerned that the suit could have drastic effects on XRP, the platform’s native token, and that the asset could experience volatility like never before. This is due to Ripple’s current case with the Securities and Exchange Commission (SEC). The SEC had previously sued Ripple for violating numerous securities laws.
Arguments For Ripple Being Labeled as A Commodity
Ripple has added about 40 percent to its price since the beginning of this year. Despite fears arising from CFTC’s lawsuit against Binance, XRP surged over 24 hours in contrast to broader crypto markets. Genevieve Roch-Decter, chief executive of capital market advisory company Grit Capital believes Ripple has what it takes to revamp digital currency arena. Chief Technology Officer David Schwartz also stated his belief that XRP is a raw good that trades in commerce and one XRP is treated as equivalent to every other XRP which is pretty much definition of a commodity. No part of XRP’s value comes from anyone else’s legal obligations to XRP holders either.
Effects of SEC Lawsuit Against Ripple
The present CFTC lawsuit against Binance has brought attention to Ripple due to its case with SEC which alleged violation of securities laws by Ripple. As response Ripple vowed to fight back and appears on verge of winning its case after gaining steam in U.S courtroom.