The United Kingdom government appears to be cementing its position that XRP is an exchange token and not a security.
Her Majesty’s Treasury has published a new document outlining the UK’s regulatory approach to cryptocurrencies and stablecoins.
The report classifies XRP, Ethereum and Bitcoin as “tokens that are primarily used as a means of exchange.” So-called “exchange tokens” fall under an “unregulated” category that means they are neither e-money nor security tokens.
The HM Treasury report was referencing a framework that the UK Financial Conduct Authority (FCA) laid out in 2019.
Explains the Treasury,
“Security tokens have characteristics akin to specified investments, like a share or a debt instrument, as set out in UK legislation. Broadly, these are likely to be tokenised, digital forms of traditional securities.”
The classification matters to Ripple, because the San Francisco-based payments company is fighting a lawsuit from the U.S. Securities and Exchange Commission that alleges XRP was an unregistered security upon its