The U.S. SEC lawsuit against Ripple has caused some major problems for the firm in the past few weeks. Amid everything, Japan’s top securities regulator Financial Services Agency (FSA) has given a completely positive statement in favor of XRP. FSA claims that XRP is not considered as security under Japanese law. According to their Payment Services Act, XRP is considered as a cryptocurrency and not a security. However, the agency has not commented on the response from any other agency regarding this lawsuit.
Ever since the lawsuit has been filed by the U.S. SEC, this is the first time that FSA has determined the legal status of XRP. Even though this has nothing to do with its legal status in the U.S., but securities regulators across the world might consider this. Back in the previous week, the UK Treasury Department has stated that according to them, XRP is just like an exchange token. The agency has compared XRP with Bitcoin and Ethereum while stating it as an exchange token.
Even though regulators outside the U.S. seem to be in favor of XRP, U.S. firms are keeping a harsh stand on XRP. Grayscale, the largest crypto asset manager, has announced that it will dissolve its XRP trust. The suspending and delisting of XRP and now dissolving of the XRP trust by Grayscale are the consequences of the lawsuit filed by the U.S. SEC. Due to this action, XRP price has seen a major downfall and lost its position as the third-largest cryptocurrency after Bitcoin and Ethereum. Grayscale will be distributing the net cash proceeds after liquidating the trust to its shareholders. Once the net cash proceeds are distributed among the shareholders, the trust will be terminated.