Ripple CEO Weighs in on XRP Coin Being a Security Issue at Techcrunch’s Disrupt Event
Ripple’s Brad Garlinghouse expounds on the ‘XRP is a security’ spat
Ripple’s CEO, Brad Garlinghouse and a partner at Arrington XRP Capital, Michael Arrington recently participated in a conference in San Francisco, where they both appeared on stage. Together with Mike Butcher, an editor at Techcrunch, the three discussed Bitcoin, SEC, resistance to Ripple, and crypto-libertarians. Arrington discussed his resolution to select XRP to support the hedge fund project.
Mike Butcher posed a question to Garlinghouse concerning speculations of XRP being a security which is supervised by Ripple. This question was asked while the trio were discussing the Securities and Exchange Commission (SEC). Mike, an editor wanted to know what would take place in case the SEC chose to announce XRP as a security.
As a rejoinder, Garlinghouse at first started to define the meaning of security by asserting that security represents ownership in a firm that offers an investor rights to dividends as well as governance.
According to the CEO, there is a difference between XRP and Ripple. As an illustration, he asserted that Ripple has several stakeholders which comprise of notable firms like Google Ventures as well as several financial institution who have invested in the company. These companies possess the shares of Ripple as a company.
The CEO also asserted that when one buys XRP, it does not provide the investor with rights to the revenues or proprietorship of Ripple the firm. In his own views, there are a number of diverse air gaps that exist between SEC and Ripple, adding that the amount of fabrication on the precise matter was intense.
He also added that the firm hosted a meeting recently where he declared that in case Ripple was to shut down any time, the XRP register would still continue to work independently. Speaking concerning Coinbase and XRP, the CEO said that in case a firm has information that could assist influence the value, then that makes it more like a security. It is only ironical that Coinbase is among the key drivers that fuel of infliction of XRP. As a conclusion, the CEO asserted that XRP is not a security and that the firm has clear facts and so no one ought to worry about it.