British Treasury documents show that the country does not consider XRP, Bitcoin and Ether as securities. This suggests that the UK legislature’s approach to digital currencies, and in particular XRP, is quite different from that of the US Securities and Exchange Commission (SEC).
To Report Cryptocurrency, the British Treasury, also known as the Royal Treasury, has recently added a new XRP token to its list of non-securities assets.
In its report, the British Treasury outlined the UK legislative perspective and legal framework for digital assets.
According to the report, digital tokens are classified into three main categories:
- E-Money tokens;
- Securities tokens;
- Unlicensed tokens
In this report, the digital currencies XRP, Ether (ETH) and Bitcoin (BTC) are classified in the group of trading tokens that are under the category of unlicensed tokens.
According to the British Treasury, these tokens do not fall into the category of electronic money tokens, are not considered as securities tokens, and their characteristics do not resemble those of securities tokens or other investment instruments.
It is worth mentioning that the British Treasury is the highest financial supervisor and is responsible for formulating and implementing monetary and economic policies of this country. Earlier in 2019, the British Financial Strategy Authority (FCA), a subsidiary of the Treasury Department, began classifying digital currencies.
The contents of the UK Treasury report show that the UK does not explicitly consider the XRP digital currency as a security asset; The US Securities and Exchange Commission, meanwhile, has filed a lawsuit against the Ripple Foundation, claiming that the XRP token is an unregistered security.
Earlier in December 2020, the US Securities and Exchange Commission filed a lawsuit against the Ripple Foundation, claiming that the foundation was selling more than $ 1.38 billion worth of XRP tokens as a sale of securities. Not registered.
Brad Garlinghouse, CEO of the Ripple Foundation, says the XRP token is not considered a security even by US financial standards. In an interview with CNBC last month, he claimed that even the US Treasury Department did not consider the XRP token as a security; According to him, earlier in 2015, a document was published by the US Financial Crimes Network (FinCEN) that considered XRP a virtual currency.
We will have to wait and see to what extent these documents and claims can affect the Ripple case in US courts.