Cryptocurrency

The US SEC, Ripple (XRP), Ethereum (ETH) and Their Security Status

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Since 2017, the boom in the crypto market created a sense of concern for the U.S. Securities and Exchange Commission as it has been keeping a close eye on all the cryptocurrencies that were launched. According to the chairman of the SEC, Jay Clayton, many cryptocurrencies should be controlled by using security laws. He also says these cryptocurrencies fall under the security category.

While after the year 2017, the number of cryptocurrencies increased and so increased the number of cryptocurrencies facing the penalty for selling unregistered securities. Although many of the crypto enthusiasts were surprised by the verdict as the verdict was less severe than expected. The verdict by SEC simply asked the guilty to return the investment of the investors and pay a penalty price.

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While many questions were revolving the clarification given by SEC saying Bitcoin isn’t a security as it did not have an answer when asked about XRP or ETH. This triggered the audience raising questions such as whether Ethereum and XRP are securities? Now, the U.S. Securities and Exchange Commission is looking to hire a cryptocurrency securities expert.

While posting a job offer on USAJobs, U.S. Securities and Exchanges Commission asked for a cryptocurrency specialist with expertise in addressing security status in cryptocurrencies like XRP and ETH. Further adding to the job post, they said,

the candidate will apply knowledge of federal securities laws to digital asset securities and crypto matters, i.e., broker-dealer, exchange, clearing agency, and transfer registrations, exchange product applications, sales, and trading practices, etc.

As per the post, the selected candidate will hold the position of lead representative in the FinTech Working Group with the SEC. Also, he or she would within the SEC be a liaison of the group the Digital Assets Working Group of the Financial Stability Oversight Council.

This job posting has created a stir in the crypto world by raising a sense of concern for users as well as the currencies. Now, virtual/crypto asset class investors are showing more interest in the security status of cryptocurrencies. Even the investors would not like a one-on-one with the SEC.

Even if the US SEC would declare XRP and ETH as securities, it would not mean that it is the end of their journey. People might panic, and a negative sentiment may run in the market regarding these currencies; people might sell their holdings too. However, these will be temporary actions, and they would not bother the crypto market permanently. As long as Ripple and Ethereum comply with the SEC rules and regulations, things will not be hard for them.

What happens with these two crypto-coins would be a surprise for many crypto lovers. It is all on the market sentiment, and the image of these coins created by their respective creators, here onwards.

Ankita Baruah

Ankita has recently joined the CryptoNewsZ team. She has a master's degree in English Language and Literature and 10+ years of experience in dealing with different types of content for print as well as digital media. Writing is her passion. Precision and originality is what she believes in and makes sure she abides by them in her write ups. When Ankita is off work, you will find her engrossed in books or enhancing her culinary skills!! You can also mail her at [email protected] to discuss anything related to her reports.

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