XRP Classified as “Digital Currency”: Goldman Sachs, Wells Fargo

Goldman Sachs, Wells Fargo, and HSBC recently classified XRP as a “Digital Currency,” according to reports. Ripple can call this a victory in its lawsuit with the SEC.

In December 2020, the Securities and Exchange Commission filed a lawsuit action against Ripple and two of its executives, alleging that they raised over $1.3 billion through an unregistered digital asset securities offering.

Multiple publications have cited XRP as a nonsecurity, which aids Ripple in the lawsuit. One is by HSBC on DLT technology, in which it mentioned Ripple, stating: “DLT can streamline end-to-end value transfers, reducing costs, operational risks, and settlement periods. For example, Ripple’s XRP ledger provides real-time cross-border settlements, using tokens that represent central bank currencies.”

Goldman Sachs also classified XRP from Ripple as an “opportunity in payments,” alongside Circle and Coinbase. In their “Overview of Digital Assets and Blockchain” report, Goldman Sachs highlights RippleNet.

General Counsel Stuart Alderoty circles back to Rep. Sherman’s “off-base” remarks during an oversight hearing in a recent op-ed. Alderoty writes: “Rep. Sherman’s behavior highlights the pernicious effect of regulation by enforcement.”

He continues, “unproven allegations masquerading as regulation is bad policy that hurts consumers and markets who are whipsawed by the whims of an unchecked regulator.”