Ripple CEO Brad Garlinghouse has come to the defence of XRP, the digital currency that his company is closely associated with, against allegations that it is a security. In a recent conversation with entrepreneur Jason Calacanis, Garlinghouse slammed critics of XRP and accused them of being ignorant of security laws.
remind me when you learned securities law?! This is embarrassing for you (and hilariously wrong as there is no framework to register digital assets in the US), but we're all used to you making controversial statements and trolling about things you know nothing about…
— Brad Garlinghouse (@bgarlinghouse) May 9, 2023
Garlinghouse Slams XRP Critics
Calacanis had suggested that XRP was a security, which would subject it to regulation by the Securities and Exchange Commission (SEC) in the US. However, Garlinghouse strongly disagreed with this assessment, arguing that there is no framework in the US to register digital assets such as XRP.
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Garlinghouse also criticized Calacanis for making provocative statements without having sufficient knowledge about the subject. He said that it was embarrassing and funny to see people who lack understanding of the laws and regulations around digital assets making accusations against XRP.
Garlinghouse was not alone in defending XRP. Pro-XRP lawyer John Deaton also disagreed with Calacanis’ assessment and argued that XRP is not a security under US law. Deaton has been a vocal supporter of XRP and has even filed a lawsuit against the SEC over its classification of XRP as a security.
Claiming Ripple sold XRP as a security is one thing. Saying XRP is a security is another. XRP is a line of code inside software. How do you register?
“to have registered it as a security and played by the rules like everyone else.”
Where did ETH, ADA, ALGO, XLM, etc. register?
— John E Deaton (@JohnEDeaton1) May 9, 2023
The debate over whether XRP is security has been ongoing for several years, and Ripple has faced legal challenges over the issue. The SEC filed a lawsuit against Ripple in December 2020, alleging that the company had conducted an unregistered securities offering by selling XRP. Ripple has denied the allegations and is currently fighting the lawsuit in court.
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Despite the legal challenges, Ripple and its supporters remain confident in XRP’s future. Garlinghouse and Deaton both believe that XRP is not a security and that digital currency has a bright future ahead of it. As the debate continues, it remains to be seen how regulators and the courts will ultimately classify XRP and other digital assets.
Garlinghouse Highlights Some Of The Potential Of XRP
During the conversation with Calacanis, Garlinghouse also highlighted the potential of XRP as a global currency, arguing that it can make cross-border transactions faster, cheaper, and more efficient. He emphasized that XRP is not just a digital asset, but a tool that can transform the way that money moves around the world.
Garlinghouse also pointed out that XRP has already been adopted by several financial institutions around the world, including major banks and payment processors. He noted that the adoption of XRP is a sign of its value and potential and that it is already being used to facilitate trillions of dollars in transactions every year.
Despite the controversy and legal challenges surrounding XRP, Garlinghouse and his team remain committed to building a global network that uses digital currency to power cross-border payments. They believe that XRP has the potential to revolutionize the way that money moves around the world and to bring financial access to millions of people who are currently underserved by traditional financial systems.