Ripple CEO Brad Garlinghouse Discusses XRP Security Status at Disrupt Event
Ripple CEO Brad Garlinghouse Discusses XRP’s Security Status
Ripple is the subject of a daunting debate that entails whether it is a security or not. Though the SEC has not taken a firm stance on the matter, both Ripple’s CEO Brad Garlinghouse and Michael Arrington of Arrington Capital discussed the matter at Techcrunch’s San Francisco Dirupt Conference.
Techcrunch Editor Mike Butcher facilitated the discussion and he began by asking Garlinghouse what Ripple’s fate will be if the SEC does ultimately classify it as a security.
Security is something that represents ownership in a company that gives you rights to dividends, give you rights to governance, things like that. Ripple and XRP are two separate entities. When you buy XRP, that doesn’t give you any rights to the profits or ownership of Ripple the company.
Garlinghouse added that here are many FinTech companies that have adopted Ripple into their platforms and he also made it clear that the SEC and Ripple do not share a common ground. As a result, there is a great deal of false information regarding the debate as to whether Ripple is a security. He continued to state that if Ripple stops operating, XRP will keep functioning.
In terms of Coinbase, Garlinghouse mentioned that concerning house the exchange platform affects XRP’s price and XRP’s listing, “Ripple is not a security and that XRP is different from Ripple.”
As for Ripple and its holders – if it is determined to be a security, many are concerned that the value will decrease. However, Garlinghouse believes that there is a bright point for Ripple.
He mentioned that it should not be forgotten that Wallstreet pleaded for a Ripple IPO and if it is declared a security, Wallstreet may be dismayed because XRP will be featured on local exchange platforms. Ripple will benefit because local trading platforms will want to bet on Ripple and it will then lead to an increase in market capitalization. In addition, there is a possibility that Ripple’s market capitalization will increase by twenty-fold.
Consequently, investors should not discard or sell their tokens if Ripple is declared a security. Ripple will attract local exchanges, leading to an increase in market cap, and investors will benefit as holders.