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Ripple CEO Brad Garlinghouse believes his company can still thrive in a hypothetical scenario where XRP is declared a safety by US lawmakers.
Appearing in episode 439 of the Pomp Podcast, Garlinghouse spoke about the implications of the XRP declared as a title by the United States Securities and Exchange Commission, or SEC. He said such a stance would run counter to prevailing opinion among the G20 markets.
While acknowledging that “it is very difficult to regard XRP as a security,” Garlinghouse said:
“You know, if XRP was considered a stock here in the US that, you know, we have other G20 markets that have a different view. I am not aware of any market globally that thinks XRP is a security. “
Garlinghouse added that “more than 90% of RippleNet’s customers are outside the United States,” suggesting that a stock designation would not necessarily hamper the company’s underlying business.
If XRP were declared a title in the United States, investors (including Ripple) would have to complete the broker-dealer registration with the SEC.
The regulatory status of XRP has come under intense scrutiny in recent years, with veteran trader Peter Brandt being the last public figure to declare it a title.
On the other side of the spectrum, Congressman Tom Emmer, a Republican from Minnesota, said in August that XRP is not a security.
Ripple has been the subject of a class action lawsuit by disgruntled investors claiming XRP is a stock. The lawsuit accuses Ripple of false advertising and unfair competition. An amended filing in March stated that Garlinghouse was buying XRP from potential investors while simultaneously liquidating its holdings.
XRP is back in the limelight this month after an explosive rally that pushed the cryptocurrency above a multi-year range. Thursday was the subject of strong profit taking, down more than 28%.
