Blockchain payments company Ripple has become the talk of the cryptocurrency community as a result of the on-going legal tussle with the US Securities and Exchange Commission (SEC). The company has been trying to reason with the SEC to prove that XRP is not a security. Now, Ripple’s CEO has added that XRP would continue to trade on the market even if the company ceases to exist.
In an episode of “Axios on HBO,” company CEO Brad Garlinghouse said:
“If you own a security, it gives you ownership of a company, right? If Ripple goes away, XRP’s gonna keep trading.”
He went on to state that XRP hasn’t be referred to as security in any jurisdictions other than the United States. The SEC had slammed Ripple with the $1.3 billion lawsuit back in December, alleging that the company and its executives conducted an illegal securities sale.
Ripple has argued that XRP can’t be considered a security, and had filed for a Freedom of Information Act request for documents from the SEC that states how the agency determined that bitcoin and ether, are not securities.
In addition to multiple exchanges delisting the token, global remittance giant MoneyGram, the company’s biggest backer, put its partnership with the blockchain company on hold. MoneyGram was later sued by some of its investors for lying about its relationship with Ripple.
As per a recent ruling in a spate lawsuit filed by U.K. investment firm Tetragon Financial Group Ltd., the SEC is expected to have the final say in deciding whether XRP is a security or not. In this case, Ripple argued that there’s been no determination that XRP is unregistered security. Hence, the judge agreed that XRP’s status remains an open question until the SEC takes a decision.
Bad for the industry
Garlinghouse went on to state that if the SEC comes to the conclusion that XRP is a security, this would negatively affect the whole industry:
“This isn’t just bad for Ripple. It’s bad for crypto broadly in the United States and it’s driving that activity, it’s driving that entrepreneurial activity outside of the United States. I think that definitely bodes poorly for the crypto industry at large.”
Amidst all the trouble, Ripple hasn’t slowed down on development and has recently announced a private version of its open-source XRP Ledger that will support central bank digital currencies (CBDCs).