Ripple CEO on the Future of XRP as Conversation on Crypto Banning Increases

Ripple, known for being the XRP pioneer of cryptocurrencies, has been locked in a high-risk legal dispute with the US Securities and Exchange Commission since last year.

Ripple CEO Brad Garlinghouse redoubled his frustration over the lack of clarity in US regulation of digital assets in an appearance on CNBC’s “Squawk Box” on Wednesday.

He says that a big part of the problem with the regulation of cryptocurrencies in the US is not the cryptocurrency players, but the inaction of US regulators compared to their global peers. The SEC accused Ripple, co-founder Chris Larsen, and Garlinghouse of conducting an illegal securities offering that allegedly raised more than $ 1.3 billion through XRP sales.

XRP rose about 8% on Wednesday morning amid a rebound in cryptocurrencies, and has risen more than 300% so far this year, but has fallen far from its peak of YTD during the recent drop in stocks. cryptocurrencies. Bitcoin had rebounded from its recent massive decline and was hovering around $ 40,000 on Wednesday.

“There is a misunderstanding about how these technologies can be applied,” Garlinghouse said. “In the United States there has been a lack of regulatory clarity. Other countries, G20 markets, have invested time and energy, whether through legislation or rulemaking, to provide that clarity and certainty, which allows investors to participate, entrepreneurs to build. “

Ripple was ranked 38th on this year’s CNBC Disruptor 50 list.

Fights between the crypto industry and regulators are ongoing: On Wednesday, the UK banned an ad advising people to buy bitcoins, calling it ‘irresponsible’. An opinion piece in the Wall Street Journal this week called for a cryptocurrency ban, citing issues such as hackers using cryptocurrencies to get paid for cyberattacks such as the recent Colonial Pipeline ransomware incident.

Robinhood, this year’s number one CNBC disruptor company, says that in the first quarter of 2021, 9.5 million customers traded cryptocurrencies on Robinhood Crypto, up from 1.7 million in the fourth quarter of 2020.

Ripple’s on-demand liquidity service uses XRP as a kind of “bridge” between currencies, which it says allows payment providers and banks to process cross-border transactions much faster than they would across the Legacy pay rails.

Despite the return of crypto volatility this month (bitcoin is still down more than 32% this month from its monthly decline in value since 2018), this and other tokens like XRP reached new heights this year. Ripple owns the majority of the XRP tokens in circulation and sells a small fraction of its holdings each month.

“XRP is an open source technology very analogous to bitcoin,” Garlinghouse explained. “But the SEC claims that these are investment contracts… that Ripple’s sales of XRP to our clients is actually an investment contract. That is not true. If you buy XRP, you don’t have ownership of Ripple and ironically, there are XRP owners who have tried to sue the SEC for even bringing the case. “

Bitcoin, energy use and Elon Musk

Iran banned bitcoin mining operations on Wednesday amid power shortages. China has also cracked down on miners in recent months after concerns about energy consumption.

Ripple’s CEO has criticized the amount of energy bitcoin mining uses, but says he is far from the only figure to raise the issue, with everyone from Elon Musk to Bill Gates and Jack Dorsey stepping in, and Ripple. is not doing something. secret war against bitcoin.

“If Ripple could control those people, we probably wouldn’t have a lawsuit from the SEC,” he said.

Musk’s Monday tweet that he was talking to bitcoin miners about energy efficiency ideas that were “promising” helped boost bitcoin.

Earlier this month, Ripple strengthened its board and appointed former US treasurer Rosie Rios.

“I think that at the end of the day, the industry should focus on profit. And are these technologies solving real problems for real customers? ”Garlinghouse previously told CNBC, adding that Ripple will continue to leverage its ledger and XRP tokens to make payments efficient. . Still, the company has threatened to move to other jurisdictions if XRP is considered a security in the US.

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