Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Grayscale is dissolving its XRP Trust and will distribute cash to investors after liquidating all XRP held by the trust.
Institutional crypto-fund manager Grayscale Investments has begun the dissolution of its XRP Trust in response to the Security and Exchange Commissionâs December 2020 lawsuit alleging the XRP token is a security under U.S. law.
According to an announcement published Wednesday, Grayscale decided to dissolve the trust in response to the spate of XRP delistings from major crypto-asset exchanges after the SECâs complaint was filed. Grayscale concluded:
âIt is likely to be increasingly difficult for U.S. investors, including the Trust, to convert XRP to U.S. dollars, and therefore continue the Trustâs operations.â
All XRP held by the trust has already been liquidated, with Grayscale intending to distribute the net cash proceeds to XRP Trust shareholders after deducting expenses. The trust will be terminated following the distribution of said cash.
Despite the SECâs hardline position on XRP, regulators in other countries are not convinced the token comprises a security.
A January report on cryptocurrency regulation published by the U.K. Treasury classified XRP as an âunregulated tokenâ alongside leading digital assets Bitcoin (BTC) and Ether (ETH), with the Treasury describing unregulated tokens as âneither e-money tokens nor security tokens.â
The report describes XRP primarily as an âexchange tokenâ â a token that is âprimarily used as a means of exchange.â
On Wednesday, Japanâs Financial Services Agency told The Block it classifies XRP as a cryptocurrency, not a security.
XRP is currently trading for $0.31 and is down 40% in the past 30 days.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.