Ripple CEO Speaks About The Securities Of XRP
Ripple CEO Brad Garlinghouse explained what would happen to Ripple if XRP was declared a security by the SEC.
Ripple CEO Brad Garlinghouse spoke in a recent podcast with Anthony Pompliano of Morgan Creek Digital of a dystopian scenario in which XRP was declared a security by the SEC, and he believes it will be the death knell for the San Francisco-based blockchain firm. Garlinghouse used the following statements:
I think it is very difficult to view XRP as a security. You know, even if XRP was accepted as a security here in the United States, other G20 markets would have a different view. I don’t think there is any market worldwide that thinks XRP is a security.
If such a negative regulation is made, Garlinghouse claims that US citizens will need a broker reseller license to trade XRP. Ripple can also be included in this because the company provides cryptocurrencies to companies backed by On-Demand Liquidity (ODL) technology. However, only a small percentage of Ripple’s customers are actually from the US:
Most of our customers are not US customers for a long time. More than 90 percent of RippleNet customers are outside the United States… We’re solving the more painful cross-border payment problem for small countries.
While making it clear that Ripple can operate successfully outside of the United States amid speculation about the move of Ripple’s global headquarters to Japan, Singapore or the UK, he emphasizes that Ripple is a “proud US company.”
Garlingouse said the following in his speech:
The key to the long-term success of Bitcoin (and all cryptocurrencies) is that we are intellectually honest. A quality space is needed not only for XRP companies to compete effectively, but also for other projects.