The cryptocurrency market has enjoyed some incredible growth in recent times. With the whole world’s economy facing a plethora of challenges, it’s no wonder this form of finance has continued its upward trend.
With this in mind, there are a number of cryptocurrencies that have paved the way for the accelerated adoption of this digital currency. There are still a number of discrepancies that are plaguing the market due to its nuances and infancy. One major case which is currently unfolding before our eyes are focused around the infamous Ripple coin and the SEC.
This case will be groundbreaking in the sense that many loopholes in using this digital currency will be addressed. Thereby, allowing for the streamlining of the regulation and function regarding cryptocurrency.
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What is Ripple?
Ripple is a blockchain-based digital payment network and protocol with its own cryptocurrency known as XRP. Ripple uses a consensus mechanism instead of blockchain mining which is run by bank-owned servers to authenticate transactions.
Why Use Ripple at Online Casinos?
There are various reasons that more and more players are making use of cryptocurrencies when playing at an online casino. One of the biggest attractions is without a doubt the fact transactions are conducted almost instantly.
Ripple also uses far less energy than other major digital coins which should entice those energy-efficient funders. This basically accounts for why transactions are processed faster than Bitcoin, for instance.
One of the main reasons that players should consider using Ripple when conducting transactions at online casinos, is due to the fact that there are far lower operating costs involved thanks to less energy being used. Another fact is that many online casinos will offer incredible bonuses for real money when players use cryptocurrencies when making a deposit. Find a top online casino real money to get the most out of using crypto.
What is the SEC?
The Securities and Exchange Commission or the SEC as it’s more commonly referred to, is basically an independent federal government regulatory agency. Its main functions are to provide protection for investors, maintain a fair and orderly function of the securities market, and facilitate capital formation.
The SEC was created in 1934 in the wake of the Great Depression which affected the U.S market in 1929. The SEC is able to bring civil actions against lawbreakers and often works closely with the justice department.
What Does a Security Mean?
This is exactly why the SEC vs. Ripple case is so important right, more so for Ripple and their holders than anyone else. The Ripple lawsuit will determine whether or not the cryptocurrency will be considered a security or not.
Should the SEC win their case, Ripple will then be considered a security instead of what it is currently known as, a currency. This may not seem like much, however, it will have a major impact on investors and how Ripple can be used in financial transactions.
Although many cryptocurrencies are, in fact, securities. They are currently not being referred to as such. Hence, the Ripple lawsuit could change the entire ball game depending on the outcome. Ripple recently won the first round against the SEC. We’ll have to wait a little longer to get proper clarification regarding this question.
Is Ripple Considered a Security?
This is exactly why the SEC vs. Ripple case is so important right, more so for Ripple and their holders than anyone else. The Ripple lawsuit will determine whether or not the cryptocurrency will be considered a security or not.
Should the SEC win, Ripple will then be considered a security instead of currency. This may not seem like much, however, it will have a major impact on investors and how Ripple can be used in financial transactions.
Although many cryptocurrencies are, in fact, securities. They are currently not being referred to as such. Hence, the Ripple lawsuit could change the entire ball game depending on the outcome. Ripple has just recently won the first round against the SEC. We’ll have to wait a little longer to get proper clarification regarding this question.
The Howey Test
The Howey Test is basically a method that is being used by regulatory bodies in order to determine whether or not a currency should be considered a security or a currency, in layman’s terms.
The question asked is basically, “Is the monetary value of the asset being invested in dependent on the efforts of a third party?”.
Legal Precedent
A legal precedent is a method of court ruling based on a number of similar cases previously ruled upon. The vast majority of countries across the globe will take into consideration previous cases to have take on proceedings.
In the case of the SEC versus Ripple, this has proven to be a little tricky. Although there have been numerous cases regarding cryptocurrencies. Should the courts determine that Ripple is in fact a security and not a currency, this could open the floodgates for other cryptocurrencies to be regarded as a security.
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