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Canada sees XRP as a utility token not as a security, according to Canada Tax Foundation

The SEC is facing tremendous pressure in its decision-making regarding regulating the cryptocurrency market, especially as it is embroiled in an ongoing lawsuit against XRP. This lawsuit has led many to question, is XRP a security or not? And although it has been confirmed that it is not security along with BTC, ETH is also infected. According to the Canada Tax Foundation, XRP was recently listed as a utility token, not as a security.

XRP is seen as a utility token, not as a security in Canada

A few days ago, the Canada Tax Foundation released a report entitled “Taxation of the token economy: Cryptocurrency and DLT tokens.” The report aims to provide a comprehensive framework for understanding the issues involved in the
taxation of the “token economy.” The token economy is the use of “tokens” the secure, efficient, and inexpensively trade valuable assets online through decentralized “distributed technologies” (DLT) that eliminate the need for trusted intermediaries to effect those transactions, such as lawyers, accountants, brokerages, clearinghouses, etc. Bitcoin is only one type of token, and the blockchain is only one type of DLT.

And when it comes to Token Property Framework, the report defines Ripple as belonging to Utility tokens. Also, they clearly define Ripple as an Application Settlement, providing P2P settlement for transactions with third parties on a native application platform. In addition to Ripple, there are Siacoins, Mysterium, and Filecoin in this group.

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Source: Canada Tax Foundation 

Meanwhile, in another development, not long ago, as AZCoin News reported, Empower Oversight, a nonprofit, nonpartisan educational organization dedicated to enhancing independent oversight of government and corporate wrongdoing, has submitted a FOIA (Freedom of Information Act) request to the Securities and Exchange Commission (SEC).

Reportedly, the FOIA request is seeking communications between SEC officials and their current and former employers amid the turbulent lawsuit against Ripple and its defendants. Empower Oversight also asks whoever has first-hand information on the matter to disclose it and assist the organization with these inquiries.

The SEC is facing tremendous pressure for its decision-making when it comes to enforcement of the crypto space. The SEC v. Ripple case seems to have been the last straw as the industry is united in tackling the regulation by enforcement method.

Furthermore, as AZCoin News reported, even two of its Commissioners have come forward against the practice. SEC’s Hester Peirce and Elad Roisman have agreed to the lack of clarity and called for fewer enforcement actions and, instead, a clear regulatory framework for digital assets. The SEC dismissed the statement as being their personal views only.

This week, it became known to the public that Ripple found the SEC tried to delete subtopics relevant to the lawsuit from the transcript.

“You call ten different law firms, and they give you ten different answers, each of them has their particular spin. It’s like the white light of your speech went through a prism and came out in ten different colors of legal advice”, the erased part was William Hinman’s statement.

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XRP/USD 4-hour chart | Source: TradingView

At press time, XRP price is changing hands at $1.135, recording a 13% increase over the past seven days. Let’s wait and see how the case progresses.

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