Just recently, Michael J Saylor, the CEO of MicroStrategy, a Bitcoin pro company made comments about the nature of Bitcoin versus the altcoins.
He claimed that all cryptocurrencies apart from Bitcoin (BTC) are securities. Although it was just a statement from Saylor, it gave a wrong impression to the entire crypto industry.
Saylor is among the most influential figures in the cryptocurrency industry. He has been supporting Bitcoin as a pro and he has asked his company to do the same over the past couple of years.
His comments set fire to the entire cryptocurrency industry, especially, among the XRP community. The statement Saylor made implies that even XRP is security.
This would mean that Ripple Labs had been fighting the US SEC for no reason at all and the securities regulator was correct all along.
Such comments coming from a highly influential figure such as Saylor have the ability to mislead the entire cryptocurrency industry.
It may even set off the cryptocurrency industry in the wrong direction.
John Deaton Came to Save the Day
This is when John Deaton entered the scene to save the day not just for XRP but for the entire cryptocurrency industry. He intervened to rebuff the comments and the statement made by Michael J Saylor about the nature of altcoins.
John Deaton stated what Saylor has spoken in his mind and thoughts and nothing more than that. This is because no one has the right to make any claims about the nature of cryptocurrencies until the respective regulator defines it.
Therefore, if all the altcoins are securities, then it is the job of the US Securities and Exchange Commission to set the rule.
If any cryptocurrency platform tends to disagree with Saylor’s claim, then they must take it to the court and fight it out.
This is exactly what Ripple Labs has claimed and it is fighting hard for that. If the US SEC had to define every cryptocurrency to be a security, then it would have announced that in advance.
Instead, the regulator waited for years until it launched legal proceedings and scrutiny against the cryptocurrency projects that had been running for a long time.
Saylor Affirmed Gensler’s Claim
It was on February 23 when a statement made by Gary Gensler, the SEC Chair, was published by the New York Magazine.
The statement claimed suggested that as per Gensler, every cryptocurrency was a security. However, he ruled Bitcoin out of the list of cryptocurrencies.
This meant that he literally excluded Bitcoin from the formality and added the rest of the cryptocurrencies to the “securities” category.
While making the claim, Gensler stated that as the altcoins are all securities, they fall under the jurisdiction of the US SEC. Therefore, the securities are subject to gaining a license and registration before they can be offered.
Just when Gensler’s statement came out, Michael J Saylor proceeded with supporting it with his own statement. He acknowledged and appreciated the statement made by Gensler.
Even the Bitcoin maxis came in to acknowledge what Saylor had stated and they applauded him for the comments.
Disagreement from Deaton
Deaton, an XRP pro lawyer, proceeded with sharing his disagreement with both Gensler and Saylor.
While disagreeing with both figures, he claimed that it is completely wrong to make such a claim. He stated that there is no such consensus that defines altcoins are securities while Bitcoin is not.
Even the legal communities have not come to a final decision about the nature of cryptocurrencies. Each cryptocurrency is developed by a different developer.
Therefore, every crypto acts differently in the crypto environment and it is the utility of a token that defines its nature.
As far as XRP is concerned, it cannot be defined or classified as a security until the case comes to a conclusion between Ripple and the US SEC.
