The regulatory status of the native currency of Ripple XRP was discussed during the Bloomberg interview with Hester Peirce, the Commissioner of SEC, and she has said that XRP does not necessarily have to be a security. The “Crypto Mom” has always extended support to the crypto industry and added that if the issuer gets prosecuted by the agency, the crypto asset doesn’t have to be a security.
The Commissioner of the United States Securities and Exchange Commission, Hester Peirce, said an imposition action means that the asset was being sold in the form of an investment contract.
Addressing the thought of considering XRP as a security, Hester said:
In addition to this, Hester laid an emphasis on the need of providing more regulatory clarifications by the SEC before the firm spends unnecessary time on non-fraud cases.
This was over their XRP sales that were not registered, and it reportedly contravened the federal securities laws.
However, in response to the allegations, the executives defended their case and argued that the sales and distribution of the firm were not part of the investment contracts.
Along with this, they provided the court with information that the holders of XRP are not having any stake in the company.