Veteran commodity trader Peter Brandt has claimed that XRP cryptocurrency is actually a security. According to Brandt, the digital asset affiliated with Ripple has still not yet been declared as a security by the Securities Exchange Commission (SEC) due to the regulators' incapability of understanding the crypto industry. Meanwhile, the CEO of Ripple, Brad Garlinghouse, had always emphasized XRP’s real utility due to its operability in cross-border transactions.
Ripple believes that XRP should be declared as security as XRP Ledger functions are completely independent of Ripple. This signifies that anyone holding XRP is not liable for stakings in Ripple firm.
Over the past years, Ripple company itself had been trying to get XRP registered as a security, although been unable to do so. However, in October, Ripple scored a partial victory over its long-standing class-action lawsuit claiming that XRP cryptocurrency is unregistered security.
Even though the case still has a lot to continue, a portion of the claims of the lead plaintiff Bradley Sostack was dismissed with prejudice. Back in June, the Ex CFTC chairman Christopher Giancarlo declared that XRP wasn't a security. Ironically, Giancarlo is now working at a law firm that provides legal services to Ripple. The chairman, however, describes Bitcoin and Ethereum as commodities.
Brandt’s recent remark on XRP doesn't signify that the investor is all about being bullish on the crypto token. Earlier this year, the investor had accused Ripple of manipulating the market while describing the XRP as a manipulated scam.
The investor believed that XRP was behaving positively in the crypto market due to Ripple’s underground misdoings. Ripple company itself holds half of XRP’s supply which is why the investor accused the fintech company of being a “bag holder.”