Declaring XRP as security in the US wouldn’t hurt RippleBrad Garlinghouse, CEO of the American blockchain company that focuses on payment technologies, could damage the country’s wallet, however.
“My very strong opinion [is] that it is very difficult to view XRP as a security, “the CEO repeated during the November 26 Pomp podcast episode, hosted by Morgan Creek Digital Co-founder Anthony Pompliano. Garlinghouse said he could not envision any market worldwide or among the major G20 markets that would consider it a security, and a declaration as such in the US would create a wider technological gap between states and other countries.
But if the American regulation Securities and Exchange Commission (SEC) should say that XRP is a security. “Much of what Ripple is doing in the United States could easily be continued,” said the CEO, adding that “over 90% of RippleNet customers are outside of the US, so Ripple would” keep building and growing the business ” , he said.
Still, it is the US that could be hurt if Ripple decides to leave, the CEO said. “We would probably no longer be a US taxpayer” after the payment ” […] a few hundred million dollars in taxes, “he added.
The US regulatory framework, said the CEO, is “out of sync with what other major economies are doing,” which prevents it from “competing on an equal footing with what is happening in some of these other markets.” He highlighted the UK, Singapore, Japan, Switzerland and the UAE as a positive example of regulatory clarity.
There are companies that are refusing to use Ripple-activated products, he said, “until there is clarity,” adding that there are currently over 150 companies in the XRP ecosystem. But if there was more clarity, Garlinghouse can’t tell if more Ripple customers would be from the US. “We are solving the cross-border payment problem that is rather painful for smaller countries,” he said.
The lack of regulation of XRP is also why this coin was not included in the payment giant PayPal‘s recently announced crypto addition, Garlinghouse said. But recently suggested The Digital Commodity Exchange Act “would be a big step” to both create regulatory clarity and put the country on an equal footing with some other G20 markets.
Ripple has consistently denied that XRP is a security, particularly during the lengthy legal process following a lawsuit alleging the company effectively put the XRP token up for sale as unregistered security.
XRP rose 2.7% in one day and nearly 76% in one week, reaching USD 0.53 (at 9:27 UTC). It hit nearly USD 0.75 earlier this week.
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