Ripple company has been facing a severe lawsuit with the US Securities and Exchange Commission, with the latter regarding it as an unregistered security. Recently, Peter Brandt, a commodity market trader for 40 years, also views XRP as a security.
XRP is an Unregistered Security
Peter Brandt revealed this in his post on Twitter earlier today. According to his tweet, he said:
“Under the new SEC head, we will have many more challenges of this type. Personally, I think XRP is a security, but that would not prevent me from owning it under the right circumstances,”
However, before the above tweet, Brandt has always been a Ripple critic. A few months ago, he implored the SEC to include XRP as a Security before the actual SEC lawsuit.
SEC Lawsuit Unaffects the XRP Price Movement
The whole criticism looming against the Ripple has not deterred institutional investors or traders from holding the coin.
The commodity trader does not see Ethereum as a security. The structure is entirely different from Ripple, despite SEC chairman Gary Gensler in an interview with the New York Times, saying both Ether and XRP should be classified as securities.
The regulator accuses the crypto company of funding business from the proceeds gotten from the illicit sales of XRP, generating a net profit of $1.38 billion. This made the regulators go after the CEO Brad Garlinghouse and former CEO Chris Larson.
Ripple, in its defense, urges the regulator to release documents related to Bitcoin, Ether and XRP and hopes to prove this in court. But, unfortunately, despite the official testimony of former executive of SEC William Hinman, the SEC still does not want to update the status of Ether.