According to the former CFTC chair Cristopher Giancarlo, XRP can serve as a replacement for sovereign currency, and right after that announcement the Ripple XRP price increased, as we are reading further in the upcoming XRP price news.
The former chairman of the US Commodity Futures Trading Commission believes that XRP doesn’t qualify as security and that XRP can serve as a replacement for sovereign currency. Following his remarks, the price of XRP increased by more than 2.5% and different metrics show that it has even more gas in the tank.
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Ripple’s XRP made headlines after the former chairman suggested that the altcoin doesn’t qualify as a security under US law.
The former CFTC chairman commented after publishing an extensive article where he explains why Ripple’s XRP is not a security. Giancarlo argues that based on the guidelines of the Securities and Exchange Commission that are used to determine whether an asset is considered a security or not, and the cross-border remittances token doesn’t qualify. After reviewing the criteria of the Howey Test, the so-called “Crypto-Dad” maintained that XRP is a cryptocurrency that can be seen as a currency like any other sovereign currency:
“Ultimately, under a fair application of the Howey test and the SEC’s presently expanding analysis, XRP should not be regulated as a security, but instead considered a currency or a medium of exchange. The increased adoption of XRP as a medium of exchange and a form of payment in recent years, both by consumers and in the business-to-business setting, further underscores the utility of XRP as a bona fide fiat substitute.”
The former CFTC commissioner serves a counsel to Ripple labs and relied on a few factual information provided by Ripple when preparing the article. Regardless of his statement, the market participants welcomed the news as the price of XRP surged over 2.5% in a few hours. The data reveals that further increases in demand could boost the price up. The international settlements token seems to be bouncing off the 38% Fibonacci retracement level and if the bullish momentum behind it surges more, it can be reasonable to expect to go to the 23.6% Fibonacci retracement level based on the price history.
Under such circumstances, the $0.21 resistance level is a huge barrier to pay attention to. Moving past the hurdle, we can see that XRP can increase to the next supply wall around $0.236. Giancarlo is no longer a part of the CFTC and the jumping into the “XRP is not a security” bandwagon, the SEC has no word on this matter.
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