The CEO of Ripple, Brad Garlinghouse, He believes his company can still thrive in a hypothetical scenario where US lawmakers declare XRP as collateral.
In an appearance on ep. 439 of the Anthony Pompliano Podcast, Garlinghouse discussed the consequences of XRP has been declared a security by the United States Securities and Exchange Commission. or SEC for its acronym in English. Said Such a position would contradict the prevailing opinion in the G20 markets.
Although he recognized it “It is very difficult to see XRP as a value,” Garlinghouse said:
“You know, if XRP was seen as a security here in the US, we have other G20 markets that took a different stance. I don’t know of any market in the world that considers XRP to be a security. “
Garlinghouse added that “More than 90% of RippleNet’s customers are outside of the US”, This suggests that classifying it as value would not necessarily affect the company’s underlying business.
If XRP were to be declared a security in the US, investors (including Ripple) would need to complete broker and securities trader registrations with the SEC.
The regulatory status of XRP has been subjected to intensive scrutiny in recent years The experienced trader Peter Brandt, the last figure in public life to declare this as security.
On the other side of the spectrum, the congressman Tom Emmer, a Republican from Minnesota, said in August that XRP is not a safety.
Ripple has been the subject of a class action lawsuit by disgruntled investors who claim XRP is a security. The lawsuit alleges misleading advertising and anti-competitive practices against Ripple. An amended lawsuit in March alleged that Garlinghouse was buying XRP from potential investors while liquidating its holdings.
XRP was back in the spotlight this month after an explosive rally pushed the cryptocurrency over a multi-year range. It was the subject of a heavy profit-taking on Thursday that fell more than 28%.