As per a deal that was sealed between Ripple Labs and the US Treasury Department, XRP has been classified as a currency and not a security. However, since the terms of this old deal have made their way onto the internet, the question now on everybody’s mind remains “Can this agreement convince the SEC too that XRP is not a security?”
The deal was signed between Ripple officials and the Treasury’s Financial Crimes Enforcement Network (FinCEN) back in 2015 as a means of compensating for a $700,000 fine that the company had incurred for selling their virtual currency, XRP, without registering with FinCEN.
Additionally, Ripple was also found to have failed to implement and maintain an adequate anti-money laundering (AML) program that would prevent miscreants from using the digital currency and using it to finance illegal activities across the globe.
The crypto powerhouse has since changed its core business practices so as to lay in compliance with the security standards that exist today.
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