XRP bullish sentiment surged after the European Institute of Corporate Governance called XRP a non-security token.
Now, the majority of cryptocurrency whales are paying attention to XRP coin during the bullish phase of the cryptocurrency market. This is because legal clarity on the status of this currency has been brought to the EU market.
The European Corporate Governance Institute (ECGI) has a blog featuring articles on governance and climate change. When implemented effectively, these corporate governance standards promote economic growth and promote transparency and fairness in business practices.
Recently, the European Corporate Governance Institute published a paper on the legal status of the XRP cryptocurrency.
The paper was written by Wei Jiang of Emory University and Tao Li of the University of Florida, and explores the different 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 objections from the US securities regulator SEC and rulings from US courts on the matter.
According to the author, XRP is not a security token when used for direct selling on cryptocurrency exchanges.
However, here we must note that the author has mentioned that XRP tokens will be subject to securities laws if sold directly to institutional players.
A look at the Ripple vs. SEC lawsuit shows that although a court judge has already ruled that XRP is not a security token, the case is still ongoing and SEC lawyers are aiming to impose a fine on Ripple, the backend developer company. It is behind the XRPL blockchain network on behalf of large quantities of XRP tokens sold to institutional players.
Over the past few months, most of the top crypto assets have seen significant bounces in their trading prices as part of a general market upward trend, but unfortunately, XRP coin has been the only one that has failed to see significant gains.
Despite this cryptocurrency having a clear legal status in US jurisdictions, many have called it a loose coin.
Following this research paper from the European Corporate Governance Institute, many cryptocurrency experts are now talking about the possibility of an increase in the trading price of this token in the coming weeks.
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