The cryptocurrency fund manager, Grayscale Investments has the resolution of its Trust from XRP in response to the SEC’s December lawsuit claiming the XRP token is a security under US law.
According to an announcement dated January 13th Grayscale decided to dissolve the trust in response to the spate of XRP shutdowns from major crypto exchanges after the SEC lawsuit was filed. Grayscale completed:
“It is likely that US investors, including the trust, will find it increasingly difficult to convert XRP into US dollars and thereby continue the trust’s business.”
All XRPs held by the trust have now been liquidated, and Grayscale intends to distribute the net cash proceeds to the trust’s shareholders. XRP trust after costs. The trust will be lifted once the cash distribution is complete.
Despite the SEC’s tough stance on XRP Regulators in other countries are not convinced that the token is a security.
A January report on the regulation of cryptocurrencies published by The British Treasury classified XRP as an “unregulated token” alongside the large digital assets BTC and Ether. and the Treasury Department described the unregulated tokens as “Neither electronic money tokens nor security tokens.”
The report mainly described XRP as “Exchange Token” means a token that is “primarily used as a medium of exchange”.
January 13th The Japanese Financial Services Agency told The Block that they are classifying XRP as a cryptocurrency rather than a security.
XRP is currently trading for $ 0.31 and is down 40% in the past 30 days.