First and foremost, it is important to understand what XRP actually is. XRP is a digital asset that was created by the company Ripple Labs Inc. It is used as a means of payment and as a store of value, just like other cryptocurrencies such as Bitcoin and Ethereum. The key difference is that XRP is designed to be used as a fast and efficient way to transfer money internationally, making it a powerful tool for global remittances.
In recent times, the U.S. Securities and Exchange Commission (SEC) has taken a stance against XRP, claiming that it is a security and not a currency. The SEC has gone as far as to file a lawsuit against Ripple Labs Inc. for selling XRP without proper registration as a security.
However, I argue that XRP should not be classified as a security. A security is defined as an investment contract where the investor expects profits from the efforts of others. In the case of XRP, it is clear that the value of XRP comes from its utility as a currency and not from the efforts of Ripple Labs Inc.
Furthermore, it is important to note that XRP has been used as a means of payment for several years and has been adopted by numerous companies and financial institutions. This further supports the argument that XRP is a currency and not a security.
In conclusion, I believe that XRP is a valuable tool for global remittances and should not be classified as a security. The recent lawsuit against Ripple Labs Inc. is misguided and should be dismissed. XRP is a legitimate cryptocurrency that deserves to be recognized as such.
Be sure to follow Co-Founder and Chief Operating Officer of AlgoPear Ben Malena or @highvibeassets on all socials including the XRP YouTube channel where he covers the day to day case of Ripple ($XRP).