Ripple: XRP is Not a Security

Apr 13, 2018 at 9:10

Fintech startup Ripple insists that its XRP cryptocurrency is not considered as a security under United States regulations.

The third-largest cryptocurrency with a circulating market cap of more than $22 billion serves as the currency of the San Francisco-based company’s public Ripple Consensus Ledger and also acts as foundation for many of the firm’s blockchain products.

“We absolutely are not a security. We don’t meet the standards for what a security is based on the history of court law,” Ripple’s chief market strategist, Cory Johnson, expressed in an interview with CNBC.

His comments came after allegations that XRP is subject to the same securities regulations that govern stocks and bonds as Ripple distributes the digital currency by selling coins and that most buyers purchase them as investments.

Notably, Coinbase president and chief operating officer, Asiff Hirji raised the same sentiments against XRP adding that the exchange and brokerage giant is already listing every cryptocurrency for which it believes there is regulatory certainty.

Coinbase is not carrying XRP coins in its exchange.

On the other hand, Johnson also defended that Ripple did not attempt to bribe Coinbase with incentives such as an interest-free XRP loan to list the token in the exchange.

“Coinbase never ever raised the issue of whether or not XRP is a security in our discussions about listing XRP. We’re 100 percent clear, it’s not a security. We don’t meet the standards,” he further explained.

If allegations against XRP are found to be true, Ripple and the cryptocurrency exchanges that list the coin for trading will face legal ramifications.

As of this writing, XRP is valued at $0.6122 per token.