CEO Ripple.
Chief Executive Officer Ripple Brad Garlinghaus believes that the XRP token does not fall under the definition of securities. He announced this at a conference CB Insights Future of FinTech, informs Ukr.Media cryptography.
The first argument presented by Garlinghaus includes XRP Ledger. He made it clear that if the Ripple network fails at one point, XRP Ledger will continue to work:
"This is a decentralized open sourse technology that exists independently of Ripple."
His second argument was that XRP does not fall under the technical definition of securities:
"If you buy XRP, you do not buy shares of Ripple. We are a private company, we have investors. XRP does not give you access to dividends or profits. "
He then said that the XRP token was used by the company to address the issue of fast and secure cross-border payments. By definition, securities are not utility tokens and are used to generate profits earned by the company in exchange for the fact that it has the right to use depositors' funds.
It's no secret that Ripple owns about 60% of all XRP tickets.
"I do not think that our ownership of XRP gives us control over all means, because it is a decentralized open source technology. Saudi Arabia has a lot of oil, but it does not give them control over oil, "said Harlinghaus in a statement.