Q4 Ask Me Anything with Brad Garlinghouse: XRP is Not Security
Since the last AMA with Brad Garlinghouse, some things changed in the terms of having XRP become the second-largest cryptocurrency, however, some things remain the same: the question on whether XRP is security or currency.
In the latest AMA previously scheduled for December 18th, the CEO of Ripple Labs and XRP talks to Monica Long, the SVP of marketing.
Brad Garlinghouse also talks about institutional investors, also providing insights on what he thinks about the Bitcoin ETF case waiting to be concluded by the Securities and Exchange Commission.
XRP is Not a Security, Garlinghouse Says Once Again
XRP, although still waiting for the SEC’s decision on this matter, had been called out in public many times security.
Ripple Labs also faced three different lawsuits, one of which was based on the claims that XRP is security, while the asset is suspected to be used for funding business ventures of Ripple company.
Brad Garlinghouse denied all allegations of XRP being security, once again addressing this matter in the latest AMA on the last Tuesday.
According to Garlinghouse, XRP can’t be security. One of the solid reasons that would prove that is the fact that even in case of Ripple as a company would seize to exist, XRP would still prevail.
In the case scenario where Ripple Labs are seizing all operations, XRP would continue to trade. As Garlinghouse says, Ripple is “an important participant in the ecosystem of XRP,” however, there are other participants connected to the network, which means that XRP would continue to trade on exchanges.
Garlinghouse Pushes His “Institutional Investors” Prediction to 2019
Another matter that the CEO of Ripple addressed is his previous prediction for 2018, he now says he got wrong.
The prediction claimed that the institutional investors will join the digital asset participations in increasing numbers, but how Garlinghouse further adds, that didn’t happen in 2018, at least not in a notable number of institutional investors.
Garlinghouse believes that this is a case because the crypto and blockchain industry has yet to mature in order to have institutionals ready to join. Instead, Ripple’s CEO says he sees this prediction coming true in 2019, adding that he is looking forward to the upcoming year.
Ripple’s CEO on SEC Extending Bitcoin ETF Decision
As investors are waiting for the first Bitcoin exchange-traded fund, Garlinghouse points out that the Securities and Exchange Commission has a difficult job in bringing the final decision on Bitcoin ETF due to realistic concerns on potential manipulation.
As Garlinghouse emphasizes in the AMA with Long, there are major risks involved in approving Bitcoin ETF.
Furthermore, Ripple’s CEO added that the flow of Bitcoin mining power is additionally making the task that SEC has even more difficult as risks from manipulation in increasing with the increasing centralization among BTC miners.
In general, regarding the progress of XRP and Ripple as a company, Brad Garlinghouse claims that he is content with what the company achieved by far in the course of 2018.