Garlinghouse sees Ripple’s success not dependent on XRP’s SEC rating

 28. November 2020      
 Crypto   

Garlinghouse sees Ripple’s success not dependent on XRP’s SEC rating

The CEO of Ripple sees the USA as just one of many markets for his company.

Ripple’s CEO, Brad Garlinghouse, is confident that his company will be successful, even if the company’s proprietary crypto currency, XRP, should be classified as a security.

In a podcast by crypto expert Anthony Pompliano, Garlinghouse spoke about the theoretical implications of the SEC’s classification of XRP as a security, pointing out by Bitcoin Superstar that such a decision would be in stark contrast to what has been done in other G20 countries.

Although the CEO of Ripple finds it difficult to imagine that XRP could be considered as a security, he agreed with the thought experiment and said

„So in the event that XRP is classified as a security in the US, we still have markets in the other G20 countries that see things differently. So far I do not know of any market in the world that classifies XRP as a security“.

Garlinghouse reinforces this global view by noting that „more than 90% of RippleNet’s customers are outside the US“. A corresponding classification in the home country of the crypto-payment service provider would therefore have little consequence, as the CEO of Ripple suggests.

As a reminder, Ripple offers payment services based on block-chain technology using its proprietary crypto currency XRP.

Although Ripple has issued the crypto-currency, it does not control it directly

The legal status of XRP has been hotly debated in recent years, with experienced trader Peter Brandt recently reigniting the discussion when he demanded that the crypto currency be considered a security.

Meanwhile the American parliamentarian Tom Emmer takes the opposite position, he said in August that XRP is not a security.

The dispute over the classification of the crypto-currency even went to court, as several investors have already filed civil class action against Ripple because they see XRP as a security. According to this, the crypto payment service provider is supposed to deliberately misrepresent its relationship to the crypto currency. In March, Garlinghouse also became the subject of the suit.

Meanwhile, XRP’s share price is unimpressed and instead is blossoming again. Thus the crypto currency was able to climb out of a price range of several years, which was, however, almost compensated by a heavy loss on Thursday.