XLM May Face Trouble If XRP proves Security : Reports

XLM May Face Trouble If XRP proves Security : Reports 2

Many experts believe that if in the lawsuit action, hearing will prove Ripple’s native token XRP as a Securities then Steller & McCaleb may face issues.

Ripple firm is facing huge scrutinities issues by the United States Securities and Exchange Commission over irrelevant way of selling XRP securities but Ripple always claimed that all allegations are false and also XRP is a crypto asset or token and it doesn’t came under the securities, because owning XRP doesn’t mean a person owns shares in Ripple company. The whole situation is not going to be clear, even Ripple claimed that they are open to settle the case with SEC under few conditions.

Related: Ripple firm is ready to settle case with the SEC

Researcher Leonidaz Hadjiloizou taken to the  twitter regarding the ongoing lawsuit of Ripple & SEC. In a post, XRP community raised their question that which side Former CTO of Ripple Jed McCaleb will exists, if XRP deemed as securities because McCaleb sold 9 million XRP token, so in that case of the XRP as a security McCaleb will be in that situation to selling unregistered 9 Million XRP securities. 

On this, Leonidaz stated that there are huge chances that the case result will go in favour of the SEC and XRP will be deemed as Securities. And also in that situation, McCaleb & his company Steller will be in trouble to sell the 9 Million securities. 

While, Leonidaz said that it is just a technical point-of-view only. And also we can think about it that, before the selling of the token, Ripple was not actually securities. But all will depend upon the hearing and decision of the court.

Read also: Bank of Russia want to estimate how much bitcoin their citizens holding