Ripple CEO Brad Garlinghouse Argued Why Ripple (XRP) Is Not A Security
During the CB Insights Future Of FinTech conference, Ripple CEO Brad Garlinghouse said that Ripple (XRP) is not a security.
To back up his statement, Brad Garlinghouse came up with three arguments.
Ripple (XRP) is not a security, according to Ripple CEO
Garlinghouse’s first argument regards XRP Ledger. The CEO of Ripple company said that the XRP Ledger will keep on going even if the Ripple ends its business because it is a decentralized, open-source technology.
“Its open-source, decentralized technology that exists independent of Ripple,” said Mr. Garlinghouse.
He also stated that Ripple (XRP) is a utility used by Ripple and some of its platforms to conduct secure and almost instantaneous cross-border payments. Therefore, as securities are not utilities by definition, Ripple CEO thinks that it is impossible to consider the XRP a security.
“If you buy XRP, you are not buying shares of Ripple. We are a private company, we have investors. Ripple (XRP) does not give you access to dividends or profits that come from Ripple,” said Brad Garlinghouse, arguing why XRP cannot be seen as security.
Brad Garlinghouse also addressed XRP ownership, Coinbase XRP listing, and cryptocurrencies market issues
When asked during the CB Insights Future Of FinTech about XRP ownership, of which is already known the Ripple company owns 60% of all the XRP tokens, Brad Garlinghouse argued that Ripple’s XRP ownership is not putting the company in a control position over the XRP since this is a decentralized, open-source technology.
On the other hand, Coinbase cryptocurrency exchange hasn’t added Ripple (XRP) yet, but that seems not to bother Brad, Ripple CEO. According to him, Coinbase and other similar platforms decide what’s the best for them, but, on the other hand, Ripple is not targeting individual traders but financial institutions, so they’re okay with not being listed on Coinbase.
Ripple CEO also talked about cryptocurrencies market, and he said that this market lacks pragmatism and there are “holy wars where it’s more about ideologies.”
Garlinghouse is both the CEO and Chairman of Ripple Labs. This year, Ripple surpassed 300 partners, including over 115 banks worldwide. Having launched On-Demand Liquidity (ODL) for cross-border payments, Ripple now has more than 20 partners using XRP for ODL, including Moneygram, Western Union, and American Express.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Coinbase is a digital currency exchange headquartered in San Francisco, California.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.