MicroStrategy’s Saylor Identifies XRP As A Security And Promotes Bitcoin As The Only Crypto Worthy
Michael Saylor has asserted that XRP is a security, stating that the cryptocurrency is subject to U.S. law. Commission of Securities and Exchanges. The self-proclaimed Bitcoin HODLer aired strong opinions on the PBD show on Tuesday morning.
“XRP is an unregistered security,” Saylor remarked in response to a question regarding the controversial cryptocurrency. “It is rather evident. There is a business. The corporation owns a substantial amount of it and sells it to the general public, but it has never gone public and there are no disclosures. Therefore, according to the SEC, you are selling an unregistered security,” he said.
Saylor continued by arguing that, with the exception of Bitcoin, which lacked a recognized founder, all other cryptocurrencies met the requirements for an investment contract. In accordance with the U.S. Securities Act, an investment contract is defined as an investment in a shared venture that depends on the labour of others and anticipates a return.
Other than bitcoin, “these tokens are unregistered securities. They are all stock tokens created by a corporation to circumvent going public, and they are committing securities fraud,” said Saylor.
The former CEO of the business analytics firm MicroStrategy went on to criticize Ethereum, stating that it was also secure despite previous CFTC claims to the contrary.
“You are aware that Ethereum has $20 billion worth of Ether tokens locked up in the staking contract, and there are a few individuals who may or may not return it to you every year. Is this not the definition of an investment agreement? ” he asked.
According to him, one need not search far to get a conclusion. “If a human can make a choice, it’s no longer a commodity,” he stated, asserting that the fact that XRP, Ethereum, and other cryptocurrencies had firms and coders made their securities.
He went on to say that it would be great for the world if the SEC “basically shut down all of those tokens because they were all unethical. Saylor’s remarks come as the crypto world excitedly awaits the verdict in the SEC vs. Ripple dispute, which analysts believe may have far-reaching implications for the sector.