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The altcoins XRP and XLM, the service cryptocurrencies of Ripple and Stellar, ranked first and second in the top 30 in terms of daily growth. The rise in quotes by 8% and 6% is associated with changes in the lawsuit that has become, which can change the rules for regulating digital assets.
Now the US SEC uses the Howey test and the legislative framework of the late 1930s, which allows a broad interpretation of the concept of a security, giving it to most of the tokens issued to attract investment in a crypto project at an early stage.
The regulator believes that only Bitcoin can be considered a cryptocurrency due to the decentralization of the blockchain, ignoring the fact that as the ecosystem develops, it acquires the same properties as BTC. In particular, this opinion was held by William Hinman.
In 2018, he led the corporate finance department and came to the conclusion that at a certain point in the development of the Ethereum network, it ceased to have signs of securities. The presence of nodes listing on exchanges and the decentralization of transactions made it similar to Bitcoin.
Hinman made the announcement at the Yahoo Finance All Market Summit in June 2018. Ripple lawyers tried to attach the transcript of the speech to the case, but the US SEC first insisted on the confidentiality of internal documents, Hinman’s expression of a personal opinion, and not the position of the department.
Yesterday, Judge Analisa Torres added the speech of the former head of the SEC department to the case. Before that, the Digital Chamber of Commerce (CDC) entered the process. The non-profit organization holds a similar point of view, believing that the evolution of the blockchain project can remove the signs of a security from the token.
The growth of Stellar is explained by the fact that it is a fork of the Ripple protocol. The US SEC has not previously had claims against XLM, but a positive court decision will automatically apply to the code of this blockchain.
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