Brad Garlinghouse, the CEO of Ripple, says he was “compelled” to comment on the recent controversies that surround the San Francisco-based crypto behemoth.
In a recent thread, he weighs in on a class-action lawsuit, XRP sales, and transparency issues.
XRP is not a security
One of the biggest concerns surrounding Ripple’s XRP is whether the token can be classified as unregistered security by the U.S. Securities and Exchange Commission (SEC). If the company loses the ongoing court battle, this would cause a massive sell-off of the third biggest cryptocurrency.
Garlinghouse insists that XRP is not a security, and the SEC doesn’t have a final say in that matter. The UK Financial Conduct Authority (FCA), for example, doesn’t consider XRP to be a security token.
1/ As a defendant in the class action lawsuit, I won't get into the details (response from Ripple is coming soon). I will say: SEC guidance isn't issued by the Commission and isn't law, rule or regulation. It's clear XRP is not a security and the UK and others have said as much.— Brad Garlinghouse (@bgarlinghouse) August 27, 2019
XRP sales are necessary
As reported by U.Today, Bloomberg, while citing the opinions of multiple industry experts, blamed Ripple for stifling the price growth of XRP with its continuous sales.
However, Garlinghouse claims that this is a necessary measure to decrease to increase the adoption of their native token by expanding RippleNet and supporting other XRP-related businesses. Moreover, Ripple actually decreased its sales by volume quarter over quarter.
2/ XRP sales are about helping expand XRP's utility - building RippleNet & supporting other biz building w/XRP ie Dharma & Forte. Reality is we DECREASED our sales by volume Q/Q and since then the inflation rate of XRP circulating supply has been lower than that of BTC and ETH.— Brad Garlinghouse (@bgarlinghouse) August 27, 2019
Garlinghouse also states that their quarterly reports serve as proof that they set industry standards when it comes to transparency (and it’s not even debatable).
3/ @Ripple continues to set industry standards in reporting and transparency (one example is our quarterly markets report). We lay it all out, and it’s not our “view” but fact. @business https://t.co/3Ng1udAABg @bloomberg— Brad Garlinghouse (@bgarlinghouse) August 27, 2019
Earlier, Garlinghouse penned an open letter to the US Congress, asking lawmakers not to paint all cryptocurrencies with a broad brush.