The cryptocurrency fund manager, Grayscale Investments, has initiated the dissolution of its trust of XRP in response to December SEC lawsuit in which it was alleged that the token XRP is a value according to United States law.
According to a ad Posted on January 13, Grayscale decided to dissolve the trust in response to the spate of XRP takedowns from major crypto exchanges after the SEC’s lawsuit was filed. Grayscale concluded:
“It is likely that it will be increasingly difficult for US investors, including the Trust, to convert XRP to US dollars, and therefore continue the Trust’s operations.”
All XRP held by the trust have already been liquidated, and Grayscale intends to distribute net cash proceeds to shareholders of the XRP trust after deducting expenses. The trust will be eliminated once the distribution of said cash is completed.
Despite the SEC’s tough stance on XRP, regulators in other countries are not convinced that the token is a security.
A report January on the regulation of cryptocurrencies published by the UK Treasury classified XRP as an “unregulated token” alongside major digital assets BTC and Ether, and the Treasury described the unregulated tokens as “neither electronic money tokens nor security tokens.”
The report described XRP primarily as a “exchange token” means a token that is “primarily used as a medium of exchange.”
On January 13, Japan’s Financial Services Agency told The Block that they classify XRP as a cryptocurrency, and not as a security.
XRP is currently trading for $ 0.31 and is down 40% in the last 30 days.