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The regulatory status of XRP is not yet clear

Cryptocurrency

Ripple’s CEO believes that the company’s operations would not be affected even if XRP was declared as a security

Ripple has been the subject of debate in recent months, as its future in the United States remains unclear. The company’s chief executive, Brad Garlinghouse, previously said that Ripple would move if the regulatory environment around cryptocurrencies in the U.S. remained hostile.

Speaking in an episode of the Pomp Podcast, the CEO explained the impacts that the native XRP token would have if it were declared as a security. Garlinghouse admitted that it would be difficult to perceive XRP as a security guard. He explained that the position would be going against the current of perception in the G20 markets.

“You know that if XRP were considered a title here in the USA, we have other G20 markets that have a different view. I don’t know of any global market that thinks XRP is a title, ”he said.

Even so, the CEO said the company would prosper even if XRP was designated as a security by the US Securities and Exchange Commission (SEC).

Garlinghouse clarified a little more about the matter, explaining that the majority of RippleNet’s customers were located outside the United States. As such, declaring XRP as a guarantee would not impede the company’s operation. In a hypothetical scenario where XRP is declared as a security by the SEC, investors would be required to have a broker registration with the commission.

Although the status of the token has been an important topic recently, a final decision on it has not yet been made. Among those pushing for his security designation is 40-year-old trade veteran Peter Brandt. Others, like Congressman Tom Emmer, expressed their views that XRP is not a title.

Earlier this week, the price of XRP rose to almost $ 0.75 on Tuesday. The currency has since retreated to a price of $ 0.51 at the time of writing, which represents a fall of 0.715% in the last 24 hours. Turnover in the past 24 hours has also dropped to $ 21.7 billion.

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