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A reliable currency converting resource lists XRP as a currency alongside Bitcoin (BTC) and Ethereum (ETH), stirring discussions within the community.
Media personality and XRP community figure King Valex first spotlighted this in a recent post. He called attention to Valutakalkulator, a Norwegian currency converter and calculator that looks to provide market participants with useful data on conversion rates across multiple currencies globally.
𝐗𝐑𝐏 pops up as a 𝐂𝐔𝐑𝐑𝐄𝐍𝐂𝐘 in an exchange calculator. #EspCro #VNL2024 $XRP #xrpvale #follow pic.twitter.com/4NeBxmvlT0
— KINGVALEX (@VALELORDX) June 16, 2024
A quick look at the platform confirms that it lists XRP as one of multiple currencies. However, the platform also lists six other cryptocurrencies, namely Bitcoin, Dash (DASH), Dogecoin (DOGE), Ethereum, Litecoin (LTC) and Monero (XMR). While most of these assets already boast regulatory clarity as currencies, only XRP has legal clearance.
Notably, the platform exclusively caters to currencies, with little provision for cryptocurrencies, whose tags have been contested by multiple entities. For instance, the U.S. SEC has leveled charges against multiple crypto-focused companies such as Binance and Coinbase, alleging that they facilitated services involving cryptocurrencies which it finds are “unregistered securities.”
Significance of a Cryptocurrency’s Status
The status of a cryptocurrency as a security or an actual currency has legal repercussions. As a currency, a crypto asset’s primary utility is for transactions. Authorities regulate such an asset under financial laws for typical currencies, focusing on AML and KYC regulations.
However, as a security, a cryptocurrency serves as an investment vehicle, regulated by securities laws which require registration and disclosure to protect investors. This classification impacts regulatory compliance, market perception, taxation, and use cases.
Notably, nearly all the cryptocurrencies in existence did not undergo any registration process with any country’s SEC, especially the United States. However, these crypto assets, including XRP, are bought, held and sold by U.S. citizens, leading the U.S. SEC to allege cases of securities laws breach as they look to bring these assets under their purview.
XRP was one of the first crypto assets to face this sort of scrutiny, resulting in a multi-year legal battle with Ripple, the largest XRP holder. Amid the SEC’s allegations, there are divided opinions in the crypto community, with some claiming the SEC’s charges are justifiable, while others contest that XRP, like other cryptocurrencies, is not a security.
XRP Widely Regarded as a Non-Security
Valutakalkulator’s tag, which suggests that XRP is a currency, might lend a voice for the XRP community, but it is far from significant. Notably, the platform’s position on the matter would not count in legal standings. However, it is important to note that a U.S. judge has already declared XRP a non-security in the SEC vs. Ripple case.
In addition, several reputable government entities’ tags for XRP contrast the security claims. These tags are pivotal for XRP’s position in jurisdictions overseen by these entities. Notably, the European Corporate Governance Institute cited the Ripple case ruling that dubbed XRP a non-security. Also, the U.K Financial Conduct Authority (FCA) regards XRP as a utility token.