Ripple CEO on XRP Future as Cryptocurrency Ban Talks Rise
Known as the pioneer of XRP cryptocurrency, Ripple has been caught up in a high-stakes legal scuffle with the United States Securities and Exchange Commission since last year.
Ripple CEO Brad Garlinghouse doubled down on his frustration over the lack of clarity in U.S. digital asset regulations during an appearance Wednesday on CNBC’s “Squawk Box”.
He says that much of the problem with crypto regulation in the United States is not with the cryptocurrency players, but the lack of action by US regulators relative to their global peers. The SEC has accused Ripple, co-founder Chris Larsen and Garlinghouse of conducting an illegal securities offer that allegedly raised more than $ 1.3 billion from the sale of XRP.
XRP was trading around 8% Wednesday morning in the midst of a crypto rebound, and is up over 300% since the start of the year, but is nowhere near its high since the start of the year. year during the recent cryptocurrency crash. Bitcoin had rebounded from its recent massive decline and was hovering around $ 40,000 on Wednesday.
“There is a misconception about how these technologies can be applied,” Garlinghouse said. “In the United States, the regulations are unclear. Other countries, the G20 markets, have invested time and energy, either through legislation or regulation, to provide this clarity and certainty, which allows investors to participate, contractors to build. “
Ripple ranked 38th this year CNBC Disruptor 50 listing.
Battles between the crypto industry and regulators are ongoing – the UK on Wednesday banned an advertisement advising people to buy bitcoin as “irresponsible”. An opinion piece in the Wall Street Journal this week called for a ban on crypto and cited issues such as hackers using cryptocurrencies to get paid for cyber attacks such as the recent Colonial Pipeline ransomware incident.
This year’s No.1 CNBC Disruptor company, Robinhood, claims that in the first quarter of 2021, 9.5 million customers traded crypto 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 can. would do on the old payment rails.
Despite the return of crypto volatility this month – bitcoin is still down over 32% this month for its declining monthly value since 2018 – it and other tokens like XRP have hit new ones. summits this year. Ripple owns most of the XRP tokens in circulation and sells a tiny fraction of its holdings each month.
“XRP is an open-source technology very analogous to bitcoin,” Garlinghouse explained. “But the SEC says these are investment contracts … that Ripple’s sales of XRP to our clients are in fact an investment contract. That is not true. If you are buying XRP , you don’t own Ripple and ironically you have XRP owners who have tried to sue the SEC for even bringing the case. “
Bitcoin, energy consumption and Elon Musk
Ripple CEO has criticized the amount of energy used by Bitcoin mining, but says he’s far from the only character to have raised the issue, with everyone from Elon Musk to Bill. Gates and Jack Dorsey, and Ripple isn’t one of them. secret war on Bitcoin.
“If Ripple could control these people, we probably wouldn’t have a SEC trial,” he said.
Musk’s tweet Monday that he was telling bitcoin miners about “promising” energy efficiency ideas helped boost bitcoin.
Earlier this month, Ripple strengthened its board of directors, appointing former US treasurer Rosie Rios.
“I think at the end of the day the industry should focus on utility. And are these technologies solving real problems for real customers,” Garlinghouse 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 United States.
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