XRP would position itself as the only regulated crypto asset in the US when the SEC litigation ends, leading to institutional adoption and volume boost.
Jake Claver, Director at Digital Ascension Group and CEO of Beyond Broke LLC, believes XRP would stand out as the only regulated digital asset in the US when the SEC vs. Ripple lawsuit ends. According to Claver, this should elevate XRP to a unique position, driving institutional adoption and greater volumes on exchanges.
Claver shared this bullish insight while speaking to Versan Aljarrah in the latest episode of the Black Swan Capitalist YouTube channel.
“I think the lawsuit […] solved a couple different problems. Let’s say it does end before there is Congressional legislation that comes around these assets, XRP will be the only thing that has clarity,” Claver emphasized.
He further stressed: “So, what are these financial institutions going to do when everything else is in the air, and that one gets given a designation? They’re going to jump out of everything that they have and pour into this. So what does price look like on the secondary market when all that volume moves to exchange?”
Powerful statement by @beyond_broke that resonates well: If the #SEC #Ripple lawsuit concludes, #XRP will stand alone as the ONLY regulated digital asset, triggering a surge in institutional adoption.
To watch the full interview:https://t.co/dMb0553EX7 pic.twitter.com/zXyVD3wl8Q
— Black Swan Capitalist (@VersanAljarrah) May 23, 2023
Claver highlighted that, despite what a lot of people believe, the SEC lawsuit might actually come with a lot of benefits for XRP. He called attention to the fact that the community is only focused on the negative effects of the litigation without paying attention to the potential benefits.
The recent comments from Claver echo the sentiment held by a small group of industry leaders who believe the SEC lawsuit might be a game-changer for XRP. Notably, Ben Armstrong, popularly known as BitBoy, previously mentioned that XRP would stand out as the ONLY digital asset that has gone through trial and classified as a non-security.
As reported last month by The Crypto Basic, BitBoy highlighted that assets such as Bitcoin labeled as non-securities have not been subjected to any trial. The crypto influencer disclosed that he believes this unique position would drive demand into XRP, making it one of the biggest gainers in the next bull run. Claver holds a similar sentiment.
What Happens if XRP is Declared a Security?
“I don’t believe it’s going to unfold this way, but what would happen, if, let’s say, XRP ultimate was classified as a security,” Aljarrah asked Claver in the recent Black Swan Capitalist interview.
Claver asserted that if the asset is classified as a security, institutions that transmit transactions in XRP would need to acquire a broker-dealer license in order to facilitate these transactions. He further noted that one of the major implications would be the taxing approach.
“The main reason people don’t hold or use it currently is they don’t know how it’s going to be taxed – is it a currency, is it a commodity, is it a security?” He remarked.
Claver further noted that classifying XRP as a security would limit the number of exchanges that could trade it. He stressed: “It would impede exchanges’ ability to trade the asset if it were regulated as a security, and UpHold doesn’t care because they have a securities license.”
Notably, despite being headquartered in the US, UpHold continues to trade XRP amid the SEC’s litigation. The exchange already has a license to trade securities, while platforms such as Coinbase do not. Claver believes these platforms would need to obtain a securities license to trade XRP if the court classifies it as a security.