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Click on the blue words to follow us. Massive blockchain information is waiting for you! Ripple has been in the news a lot recently, and the controversy about it continues. On October 14, Dailyhodl reported that Ripple chief marketing strategist Cory Johnson said: Ripple has discussed XRP with the Trump administration. Regarding whether the SEC will decide to classify XRP as a security, he said that judgment day may never come. The positivity from the news seems to be spreading. However, XRP (ripple) may be the most problematic of the cryptocurrencies. One of the main controversies about XRP is that it is not truly "decentralized". The Ripple system relies on centralized institutions (banks, gateways, etc.) to complete the entire process. Ripple is a global financial payments company headquartered in San Francisco. In January 2013, Ripple launched XRP. Financial institutions can use XRP to achieve rapid transfers on the network. Like Bitcoin, the Ripple system is built on a cryptographically signed public blockchain, so no initial trust gateway or gateway design is required. The company set the supply of XRP at a high level of 100 billion, a one-time issuance without mining, of which 80 billion was allocated to the company and 20 billion to the three founders. The project side has a high degree of control over the market. There are many people who believe that XRP does meet the characteristics of a security. Is it a cryptocurrency or a security? This controversy has also caused a lot of legal disputes for Ripple from beginning to end. Most of the complainants were people who lost money after investing in XRP. Looking back at the lawsuits that Ripple has been involved in, we can also see the understanding, thinking and judgment of U.S. law on Ripple in the lawsuits. 01 In May 2018, plaintiff Ryan Coffey: Ripple violated U.S. securities laws California law firm Taylor-Copeland filed a class action lawsuit against Ripple Labs, accusing it of selling unregistered securities. Plaintiff Ryan Coffey also accused Ripple of violating the Federal Securities Act and the California Corporations Law. In addition to seeking compensation, he also asked the court to rule that Ripple's sale of XRP was an unregistered securities sale, and further requested that the defendant be declared to have violated securities laws. Ryan Coffey purchased 650 Ripple coins on January 5, 2018, sold them via USDT on January 18 this year, and then converted them into US dollars. The loss amount reached US$551.89, with a loss rate of approximately 32%. He mentioned in the lawsuit that due to the way Ripple Labs promoted it, he believed that the Ripple currency he invested should not suffer losses. XRP and Ripple are not decentralized, and selling XRP may also violate federal securities laws. At the time, Ripple’s head of corporate communications responded: “Whether Ripple is a security will be decided by the U.S. Securities and Exchange Commission, but we still insist that Ripple should not be classified as a security. 」 Although the amount involved in this lawsuit is relatively small (approximately $550), it is important because it sets a precedent. 「This class action lawsuit against Ripple is actually a test of its legality. 」David Silver, a partner at a law firm who has handled numerous class-action lawsuits related to cryptocurrency, commented this way. In early August, the Federal Court dismissed the plaintiff’s lawsuit against Ripple, with the following ruling: “After reading the documents submitted by the parties and carefully considering their arguments and the relevant law, the court hereby dismisses the plaintiff’s motion. 」 02 In June 2018, plaintiff Vladi Zakinov: Ripple is a security manipulated by Ripple Labs Vladi Zakinov also filed a class action lawsuit at the same time, alleging that XRP is actually a security manipulated by Ripple Labs. The complaint was submitted to the California Superior Court. The lawsuit alleges that Zakinov purchased XRP in January 2018 and "suffered losses as a result." According to Zakinov, Ripple should have registered XRP before selling it, but it never did. Similarly, Zakinov also accused Ripple and its executives of using improper publicity to increase the price of XRP. 03 In July 2018, plaintiff David Oconer: Ripple is a security The Ripple exchange in California, USA, was accused of fraud. The plaintiff David Oconer believed that XRP coins were securities. This is the third time Ripple has been subject to a class action lawsuit. Similar to previous lawsuits, Oconer's filing seeks compensation for price drops earlier this year, noting that traditional securities can provide owners with a level of control that XRP does not. Oconer further stated that Ripple fully controls XRP’s distributed ledger and is not as decentralized as Bitcoin or Ethereum. According to the lawsuit, the manner in which Ripple Labs manages and distributes XRP and the fact that it incorporates XRP into the company’s products proves that XRP is a security. Therefore, Ripple Labs violated securities laws by selling XRP. Also accused was Ripple Labs promoting XRP at a tender to increase its value. Ripple has been accused of secretly driving up the price of XRP. 04 August 2018, the turbulent "securities" controversy: Ripple can breathe a sigh of relief for the time being After winning the lawsuit against Ryan Coffey, in early August, Ripple applied to the Northern District of California for a unified trial of similar lawsuits filed against it by Vladi Zakinov, David Oconer and others. Since the Ripple case has spread across the country, the federal court can replace the district court to achieve multi-regional jurisdiction. On August 29, the lawsuit filed in California Superior Court by investor David Oconer was officially designated a "complex lawsuit," meaning it will now be coordinated with the rest of the lawsuit. According to the court, one of the requirements for designation as a complex lawsuit is "a securities claim or investment loss involving multiple parties." According to CoinDesk, Ripple Labs has been pushing to consolidate or at least coordinate the various class-action lawsuits against it in order to reduce the number of cases that the company needs to face at the same time. Faced with multiple accusations, Ripple is probably not surprised by this. 「As long as Ripple’s qualitative events are not completed, the litigation will not stop. 」 An industry insider familiar with the U.S. policy market said: "Transaction compliance and issuance compliance have become an irreversible trend around the world. As the leading country in the design of regulatory framework for the cryptocurrency industry, the United States has considerable significance as a bellwether. Tighter supervision of the encrypted digital industry is the main regulatory direction of the United States. Corresponding regulatory rules will appear for both the existing market and the incremental market. As Ripple, an old brand in the existing market, the SEC has not issued specific qualitative rules for a day, and it is constantly facing the embarrassing situation of litigation." 」 It pointed out that given that Ripple has previously been suspected of conducting organized and systematic propaganda to unspecified groups of people in the market, and has specific operating entities located in the United States, there is still a high probability that it will be classified as a security. Once this happens, Ripple, as the leading target in the global cryptocurrency stock market, will have no choice but to withdraw from non-U.S.-regulated cryptocurrency exchanges represented by Binance, or it may trigger a herd effect in the encrypted digital currencies established in the United States by many legal entities represented by it. A "Dunkirk" retreat based on the U.S. market is no joke, and the existing peripheral trading system that Ripple has built will face collapse. If Ripple is indeed classified as a security, in the eyes of some industry insiders, it means it will be removed from the largely unregulated wilderness of cryptocurrency and will need to comply with the requirements and regulations that govern assets such as stocks. Jesse Overall, a lawyer at Clifford Chance, once commented on this: If a digital token is later deemed to be an unregistered security, the situation may become complicated. In this case, both the exchange and the issuer may face fines. point of view 「It is not a security! 」 「It is not a security, but a currency. 」Michael Didiuk, a former employee of the U.S. Securities and Exchange Commission (SEC), once explained when talking about XRP, “The Howey test proposed by the Supreme Court in 1946 determines whether an asset is a security based on four factors. XRP does not meet all conditions of the Howey test and therefore it is not a security. 」 「Ripple has been emphasizing that Ripple and Ripple are two different things. 」Some industry analysts said: “Such an emphasis is necessary. On the one hand, it confirms that Ripple is an encrypted digital currency and is specifically used for payment. On the other hand, it prevents Ripple from being regarded as a stock security linked to Ripple’s performance. 」 Cory Johnson, Ripple's chief market strategist, said in a TV interview: "Ripple is definitely not a security. According to historical court rules, XRP simply does not meet the standards of a security. 」 「It is not a cryptocurrency! 」 「I don't call it a cryptocurrency, it's not a currency. 」Ripple CEO Brad Garlinghouse said at the Yahoo Finance conference in February this year. In contrast, Ripple seems to prefer the term “digital assets”. 「The more centralized a currency is, the better it can control its issuance, and Ripple owns the vast majority of XRP, which means that buying XRP is essentially buying company shares. An overly centralized digital currency like Ripple runs the risk of being classified as a security. 」Some foreign media said so. A report from Bloomberg in March stated that due to the unclear definition of XRP, it may eventually be considered a security by the U.S. Securities and Exchange Commission (SEC). The report reads: Worryingly, the close connection between Ripple and XRP may still lead regulators to consider XRP a security. So, what do you think? -END- Review of past issues  Detailed explanation of USDT’s plunge: How leading interest groups “rescue the market” If you think Bitcoin transaction fees are high, maybe it’s because: you’re poor  OKEx liquidated 58.12 million USDT in half an hour. What happened?   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