Ripple Is Poised to Succeed Even if XRP Is Declared a Security Says CEO

Ripple CEO Brad Garlinghouse spoke to the Morgan Creek Digital co-founder Anthony “Pomp” Pompliano in an episode of the Pomp Podcast. In this interview, among the questions Garlinghouse answered touched topics about the U.S. regulatory environment, the company’s possible migration outside of the U.S., and a pressing issue regarding the company’s current state: the possibility of XRP being classified as a security.

In the podcast, Garlinghouse emphasized the “frustrations” that the U.S. regulatory authorities may have regarding their stance on their coins and other cryptocurrencies. He cited a Justice Department report that tried to unify the views of the regulatory authorities. Garlinghouse said that at least seven different positions were cited in the report. A possible demonstration of the lack of unity regarding their criteria on the matter.

In operational terms, Ripple, the company that holds the third biggest cryptocurrency in terms of market share, has around 150 potential investors in the United States that require regulatory clarity before they can begin using the company’s product that will leverage XRP. This is why Garlinghouse believes that Bitcoin and Ethereum, the biggest and second-biggest cryptocurrencies in the market, respectively, have an unfair advantage as the U.S. regulatory authorities classify them as commodities.

Ripple’s CEO also believes that China is the biggest winner because the Chinese Communist Party “controls these technologies.” When asked about the chances that China will make a 51% attack on Bitcoin’s network in the podcast, he readily responded with “of course.”

When asked if he was worried about the possibility that XRP will be classified as a security, he wasn’t concerned. Ripple would still be able to exist if this materializes. This is because most of the payments that the solution company’s customers using XRP are not done in the United States. Garlinghouse also said:

“It’s my very strong opinion that it’s very hard to look at XRP as a security. You know if XRP were deemed a security here in the United States that, you know, we have other G20 markets that have taken a different view. I’m not aware of any market globally that thinks that XRP is a security.”

The company currently has a pending lawsuit, which was filed by its early XRP ICO investors claiming that they incurred losses caused by Ripple. This is why they are attempting to have XRP classified as a security for them to obtain monetary compensation for their alleged losses. However, Garlinghouse said that if XRP is classified as a security, they could still continue operating with a license in the United States and continue expanding outside the country.

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Jamie West

Jamie is an XRP veteran & keeps his finger on the pulse when it comes to all things crypto.

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