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XRP Not a Security, Just Like Bitcoin (BTC) and Ethereum (ETH): Crypto Dad Christopher Giancarlo

News
Wed, 06/17/2020 - 13:50
Vladislav Sopov
Mr. Giancarlo, who protected Bitcoin (BTC) and Ethereum (ETH) from the draconian regulatory burdens of security status, claims that XRP is a similar story
XRP Not a Security, Just Like Bitcoin (BTC) and Ethereum (ETH): Crypto Dad Christopher Giancarlo
Cover image via twitter.com
Contents

Christopher Giancarlo, former chairman of the US Commodity Futures Trading Commission, co-authored an article that aims to clear the air about whether XRP should be regulated as a security.

Verdict from 'Crypto Dad'

In his article Cryptocurrencies and US securities laws: beyond bitcoin and ether for International Financial Law Review journal, Mr. Giancarlo put forward a number of arguments to prove that XRP digital assets have no indication of being securities. First of all, XRP doesn't represent a sort of 'investment contract'.

Chris Giancarlo publishes Cryptocurrencies and US securities laws: beyond bitcoin and ether
Image via Twitter

At the same time, in accordance with the Securities and Exchange Commission report on The DAO Case, cryptocurrencies are investment contracts. XRP doesn't satisfy all requirements of the Howey test, which is designed to identify the instruments that should be regulated as securities.

The storage of XRP tokens doesn't imply the investment of money into the common enterprise. Also, XRP holders shouldn't expect profits derived from the development and marketing aspects of Ripple, Inc.

The last fact was particularly emphasized by Crypto Dad as he believes that market participants understand that:

The separation between XRP and Ripple is evidenced by the fact that the price of XRP is generally unresponsive to developments regarding Ripple and instead follows the movements of other cryptocurrencies.

XRP decentralization is sufficient to avoid security status

Mr. Giancarlo remembered the position of SEC division of corporate finance director, William Hinman, who treats Bitcoin (BTC) and Ethereum (ETH) as sufficiently decentralized systems that shouldn't be regulated as securities.

For Crypto Dad, XRP is much more decentralized. This aspect is enhanced by the no-ICO essence of the XRP token, which has been fully operational since 2012 when the XRP Ledger was launched.

XRP is broadly accepted as a utility token for liquidity. Thus, Mr. Giancarlo suggests it should be treated as 'a currency or a medium of exchange' but not as security.

Christopher Giancarlo served as the thirteenth CFTC Chairman in 2017-2019. Prior to this, he served as the commissioner for this body for three years.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director

News
Mon, 07/13/2020 - 14:38
Vladislav Sopov
John Lilic, managing director at ConsenSys decentralized development studio, has shared an over-bullish prediction for Ethereum (ETH) progress
Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director
Cover image via stock.adobe.com
Contents

John Lilic leads international business development in the ConsenSys leading blockchain development studio. He is also an expert in energy markets and cryptocurrency segments. He tracked the progress of Bitcoin's (BTC) and Ethereum's (ETH) market capitalization statistics, coming up with an extravagant prediction.

Bitcoin (BTC) should get ready for parity

Mr. Lilic outlined that Ethereum (ETH) is showcasing much healthier dynamics than its competitor is. For instance, the flagship cryptocurrency still surpasses Ethereum (ETH) by 6.3x in terms of market capitalization, while simultaneously collecting 20% fewer fees than Ethereum (ETH).

John Lilic of ConSensys foresees parity of Bitcoin (BTC) and Ethereum (ETH) market capitalizations
Image via Twitter

Also, Ethereum (ETH) is demonstrating much more impressive price dynamics this year. It gained almost 37% against Bitcoin (BTC) in 2020. That said, Ethereum (ETH) looks severely undervalued to the top manager of ConsenSys.

However, Ether is on the path to eliminating this discrepancy. Eventually, the top two cryptocurrencies may reach market capitalization parity, concludes Mr. Lilic.

Related Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains
Related
Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains

As covered by U.Today Crypto News recently, Coinmetrics on-chain research team called Bitcoin (BTC) and Ethereum (ETH) the unique crypto behemoths that have managed to recover from Black Thursday.

Bitcoin (BTC) is losing supremacy in "fee race"

Should Ethereum (ETH) overcome its undervaluation, its price may be over $1,550 based on liquid supply and current Bitcoin (BTC) market capitalization.

Recently, it was unveiled that Ethereum (ETH) blockchain continues to surpass Bitcoin (BTC) in terms of network fees for more than 30 days in a row. Ethereum (ETH) is seeing this advantage for the first time in its history.

As U.Today Crypto News reported previously, ex-Messari analyst and angel investor Qiao Wang identifies two main catalysts of Ethereum's (ETH) price run in the mid-term perspective.

Related Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang
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Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang

According to Wang, the upcoming rally may be fueled by a long-awaited transition to Proof of Stake and fixing the monetary policy of Ether token.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)