🔴 So XRP is not a security🔥 Should anyone care? Yeah – in fact most cryptocurrencies except Bitcoin have the reason to celebrate. Why? 💬👇

🔴 XRP battle with SEC lasts from 2020. It took years already, and recent news is the reason for XRP to celebrate but fortunately not only XRP. Most post-Bitcoin cryptocurrencies would be in risk, if XRP would be considered as security. Why?

🔴 “Howey Test” is the method to assess if something is security according to US law. To not go into all details of “securities” classification and why cryptocurrencies would be considered as securities – they key point and the hardest argument to that is related with the “creation” of these cryptocurrencies. Actually most of cryptocurrencies on the market were created in some kind of “ICO” process where people (users, investors) could buy these tokens for some other from of money (like crypto or FIAT). Ethereum pioneered ICO, a lot of other tokens and cryptocurrencies did that too, XRP in fact is proving that it didn’t have classical ICO, because tokens sold were already in circulation, not pre-mined.

🔴 If XRP is not the unregistered security, other crypto which would be also considered to be securities now know there is a possibility to… “fight”. Of course, not every case is the same and since blockchain is kind of innovation in scope of that “classification” problem – it is really not so obvious to decide. However, it is safe to say that if Ethereum or any other big (based on marketcap) crypto like Cardano or Solana would be considered as security – it would be a huge hit, not to say that maybe the sad end.

🔴 Maybe you wonder why Bitcoin doesn’t have these problems? The classification of cryptocurrencies is a game between choosing if it’s “security” (unregistered, so bad) or “commodity”. Common commodities we know are gold, agricultural products, oil, etc. Bitcoin, created with the idea to be “digital gold” is a transformation of energy into digital data. Based on Proof-of-Work, Bitcoin money creation is a process of turning energy into data, so it is a new, evolutionary form of commodity. Some could say that Ethereum initially was based on POW too. It’s true, this is why it’s not yet officially considered as security, however it’s worth to mention that Bitcoin never had anything what would be similar to ICO, or any kind of pre-mined offering to investors.

🔴 It’s not probably very interesting to watch all these legal cases related to blockchain, but some events are worth noticing. Blockchain since its genesis was anti-system, so this fight will last. This technology evolves, more money is invested in it, so it complies more with the law, in the same time is “harder” to classify it and regulate effectively. The beauty lies in simplicity and honesty and these are both attributes of… Bitcoin 😉