XRP bull sentiments surge, as the European Corporate Governance Institute calls it a non-security token

Now the majority of the crypto whales are eyeing XRP coin in this bull phase of the crypto market, as legal clarity over the status of this currency came to light in the EU market. 

The European Corporate Governance Institute (ECGI) has a blog that features articles about governance and climate change. These corporate governance standards, when implemented effectively, promote economic growth and foster transparency and fairness in business practices.

Recently a paper was published by the European Corporate Governance Institute on the legal status of the XRP cryptocurrency. 

This paper was authored by Wei Jiang from Emory University and Tao Li from the University of Florida, the paper explores various ways companies raise funds, such as Initial Coin Offerings (ICOs) and Security Token Offerings (STOs). To explain the legal nature of the XRP coin, the author considered the US Securities regulatory body SEC’s objection as well as a US court ruling on this matter.

According to the author, XRP is not a security token when used to sell on the crypto exchanges directly.

But here we need to know that the author noted that the XRP token will be subject to the Securities Act if it will be sold directly to any institutional player. 

If we look at the Ripple vs SEC suit, then we will find that the court judge already ruled that XRP was not a security token but still, the case is active and the SEC lawyers aimed to impose a fine against Ripple, a backend developer firm behind XRPL blockchain network, on behalf of the high amount of XRP token sold to institutional players. 

In the last couple of months, the majority of the top crypto assets showed big rallies in their corresponding trade prices, as a part of usual market uptrends, but unfortunately it was only XRP coin which failed to show any big pump. 

Many people called it a loose coin, despite this cryptocurrency has clear legal status in the US jurisdiction. 

Following this research paper by the European Corporate Governance Institute, many crypto folks are now talking over the potential pump in the trade price of this token in the upcoming weeks.

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