Garlinghouse: “XRP Is Not A Security”

Brad Garlinghouse, CEO of Ripple recently sat down in an interview with the head of marketing at Ripple, Monica Long in an ‘Ask Me Anything’ session. There were several questions asked about the startup regulations, the current state of the crypto markets, XRP and more.

During the eventful discussion, Garlinghouse was questioned by Long about whether the native token of Ripple, XRP is security or not and to this, the CEO blatantly clearly stated that “XRP is clearly not a security.”

Garlinghouse continued to say that XRP exists separately from the company, which has created products like xCurrent and xRapid which makes use of XRP to facilitate cross-border settlements. Garlinghouse went onto say, “there is a whole bunch of base layer reasons for that. One of the most important I think is… if Ripple the company shuts down, XRP trades on over a hundred exchanges around the world and XRP will continue to trade.”

There have been rumours going around that the United States Securities and Exchange Commission (SEC) would be considering XRP as security even though the CEO has said several times that the XRP ledger exists separately to that of Ripple Labs. as many crypto enthusiasts know by know, Ripple owns more than 60 percent of the total supply of XRP which is partly the reason why there have been reports claiming that XRPs market cap is mainly centralised.

Surrounding XRP is a lot of regulatory confusion which is a key reason for Coinbase, Gemini and other major cryptocurrency exchanges being hesitant to list the token. If XRP was listed in one of the major exchanges, the liquidity and value of the token would likely increase and could possibly push it to the number one spot if things worked out right for Ripple’s native token.

As reported by Coindoo, “crypto purists believe XRP must not be classified as decentralized as it doesn’t fulfil certain criteria. For instance, they do business with banks, which goes against the vision of Satoshi Nakamoto. Satoshi is the anonymous inventor of Bitcoin and the most revered figure in the crypto community.” The latest statement from Garlinghouse meant to reassure investors that XRP isn’t a security and the only way traders can but their minds at rest would be an official announcement from the SEC.

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