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Declaring XRP as a title in the US would not hurt Ripple, but it could harm the country’s stock exchange, said Brad Garlinghouse, CEO of the American blockchain firm focusing on payment technologies.
“My very strong opinion [is] that it is very difficult to consider XRP as a title “, reiterated the CEO during the Pomp Podcast episode on November 26, hosted by Morgan Creek Digital co-founder Anthony Pompliano. Garlinghouse said he cannot think of any market globally or among the major G20 markets that considers it a security, and declaring it as such in the United States would create a wider technological divide between states and other countries.
But if the American legislation Securities and Exchange Commission (SEC) were to say that XRP is a security, “much of what Ripple does in the US, we could go on, no problem,” the CEO said, adding that “more than 90% of RippleNet customers are outside of the states. United, “so Ripple would” continue to build the business and grow, “he said.
However, it is the United States that could be hurt if Ripple decides to leave, the CEO said. We would probably no longer be a US taxpayer “after paying” […] a couple of hundred million dollars in taxes, “he added.
The US regulatory framework, the CEO said, “is out of sync with what other major economies are doing,” which prevents it from competing “on an equal footing with what is happening in some of these other markets.” As positive examples of regulatory clarity, he stressed the UK, Singapore, Japan, Switzerland and the UAE.
There are companies that refuse to use Ripple-enabled products, he said, “until there is clarity,” adding that there are currently over 150 companies in the XRP ecosystem. But if there was more clarity, Garlinghouse can’t say if more Ripple customers would be US. “We are solving the problem of cross-border payments, which is more painful for smaller countries,” he said.
The lack of regulation around XRP is also the reason why this coin was not included in the payment giant PayPalThe recently announced addition of cryptocurrency, Garlinghouse said. But the recently proposed Digital Commodity Exchange Act “would represent a huge step forward” both to bring regulatory clarity and to put the country on an equal footing with other G20 markets.
Ripple has consistently denied that XRP is a stock, particularly during lengthy court proceedings following a lawsuit alleging that the company had actually offered the XRP token for sale as an unregistered stock.
XRP grew 2.7% in one day and nearly 76% in one week, reaching $ 0.53 (at 9:27 UTC). Earlier this week it hit nearly $ 0.75.
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To know more:
Ripple wouldn’t be profitable without XRP sales, the CEO admits
Ripple’s lawyers clashed with the plaintiff of a class action related to XRP
Interest in XRP has been the highest in the past two years as the price is on a roller coaster
Ripple seeks new hires to strengthen XRP and CBDC ties
Ripple has three favorite countries in case you leave the United States
