SEC Commissioner Hester Peirce Says XRP Might Not Be a Security

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.

XRP Doesn’t Necessarily Need to be a Security, Says SEC Commissioner Hester Pierce

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:

“When we think about a crypto-asset as being security what, we’re doing is we’re saying it’s being sold as part of an investment contract, which means that there are promises being made around the sale of this asset. It doesn’t mean that the asset itself necessarily has to be a security. It means that it was being sold as a security.”

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. 

Ledger Tech Provider Ripple Argue Sales Are Not Investment Contracts

Back in the month of May, Ripple was taken to the court by the SEC along with two of its significant executives, Brad Garlinghouse and Chris Larsen. 

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.