XRP and Bitcoin: Which Should Be Part of the US Crypto Reserve?
XRP and Bitcoin– The debate between the XRP and Bitcoin communities has intensified recently, especially surrounding the topic of which assets should be included in the proposed U.S. strategic crypto reserve. Technology entrepreneur Jason Calacanis recently shared his thoughts on X (formerly Twitter), stating that XRP is a “centrally controlled security,” challenging its legitimacy as a decentralized asset.
In his post, Calacanis raised concerns about XRP’s classification as a decentralized cryptocurrency, highlighting that if the U.S. Securities and Exchange Commission (SEC) allows XRP to trade like Bitcoin, it could undermine securities laws. “If the SEC allows it to trade like Bitcoin, then securities law will be worthless,” he warned. Calacanis believes this could lead to chaos in the markets, particularly with startups and funds potentially unloading large amounts of XRP on retail investors, which could cause market instability.
Impact on U.S. Markets and Investor Protection
According to Calacanis, allowing XRP to operate in the same manner as Bitcoin could be detrimental to the U.S. market, which is known for its stability and regulatory framework that attracts global investments. To protect investors, he suggested that XRP should only be traded by individuals who pass a “sophisticated investor test,” ensuring they understand the risks involved before committing significant amounts of capital to such projects.
The Crypto Community Responds
Calacanis’ comments have not gone unchallenged. John Deaton, the founder of Crypto Law, swiftly responded with a rebuttal, arguing that XRP, as a digital asset, does not meet the legal criteria to be considered an investment contract under the Howey Test. Deaton refuted Calacanis’ claims by stating that XRP is not a “contract transaction or scheme,” reinforcing his position that XRP should not be classified as a centrally controlled security.
The ongoing debate continues to divide the crypto community, with differing opinions on how assets like XRP should be regulated and integrated into future financial systems.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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