Ripple CEO Brad Garlinghouse believes his company can still grow under a fictional scenario where XRP has been declared a security by U.S. legislators.
Appearing on 439 episodes of the Pompeo podcast, Garlinghouse talked about the implications of the US Securities and Exchange Commission, or SEC, declaring XRP a security. He said such a situation would go against the prevailing outlook in the G-20 markets.
While acknowledging that “it is very difficult to see XRP as a security,” Garlinghouse said:
“You know, if the XRP was considered a security in the United States, you know, we have other G-20 markets that have taken a different view. I don’t know of any market globally that thinks XRP is security. “
Garlinghouse added that “more than 90% of Replenet Networks’ customers are outside the United States,” suggesting that the designation of securities would not hinder the company’s internal business.
If the XRP is declared a security in the United States, investors (including Ripple) will be required to complete broker-dealer registration with the SEC.
The regulatory status of XRP has been the subject of intensive scrutiny for some time now, with the P Brand brand being the latest public figure to declare it safe.
On the opposite side of the spectrum, Tom Emmer of the Republican Congress in Minnesota argued in August that XRP was not safe.
Ripple has been the subject of class-action lawsuits from unsatisfied investors claiming XRP is safe. The lawsuit alleges Ripple was misrepresented and unfairly contested. The revised filing from March claimed that Garlinghouse was buying XRP from potential investors while at the same time liquefying its holdings.
The XRP has been re-discussed following an explosive rally this month that pushed cryptocurrency beyond the multi-range range. It was the subject of huge profits on Thursday, falling more than 28%.
