Ripple CEO Brad Garlinghouse Clears the Airwaves on XRP Coin Not Being a Security
Brad Garlinghouse, the CEO of Ripple sat down for a conversation with SVP of Marketing Monica Long. Many controversial and pressing questions were asked and answered and one of the most anticipated questions was the issue of XRP being a security or not.
Garlinghouse provides the biggest reason for it not being one by stating that even if Ripple, the company shuts down, XRP would continue trading.
Ripple has changed some of its critical statements from the past, according to The Block founder and CEO, Mike Dudas. Dudas did thorough research on the company, citing Ripple’s stance on key arguments related to the company and its cryptocurrency.
Dudas also conducted a Howey Test on XRP. The Howey Test, by the US Securities Act of 1933 and the US Securities Exchange Act of 1934, whether transactions which qualify as investment contracts are considered securities. In this context, the Howey Test shows whether XRP is a security. According to Dudas, XRP passes all categories of the Howey Test.
Ripple is only one of the players in the XRP ecosystem, albeit the biggest one. Other participants include Omni which is a startup that uses XRP. He says:
“…but there are a whole bunch of participants. There are companies like Omni doing interesting things using XRP as a payment mechanism. So I think you’ve only seen that grow in 2018 and frankly, it grew despite the fact that there is that uncertainty out there. So I think it’s very clear that XRP is not a security.”
Brad Garlinghouse is appreciative of the work SEC has done to set regulations around the crypto ecosystem, as it is not an easy task by any stretch of the imagination. He says that he is looking forward to work with the regulators as he has been doing in the past.