In a recent interview with CNBC, Ripple’s Sagar Sarbhai, Head of Government & Regulatory Relations, APAC & Middle East, discussed the much talked about “XRP is a security,” subject and the SEC.
On being asked if ongoing lawsuits in the U.S alleging that XRP is a security would affect adoption of the cryptocurrency, he said that as far as the U.S is concerned, the Securities Exchange Commission [SEC] will ultimately make the decision regarding the same.
He explained that Ripple has been making continuous efforts to engage with the SEC to educate them about the use cases of XRP.
Further, the Head stated that the company believes XRP is not a security. To back up his statement, he said that there are multiple facts which explain why the company believes so.
The first reason being, when a person invests in XRP, he will not receive a stake in the company or will not receive any dividends from Ripple.
Secondly, he said Ripple and XRP are two different things, and the XRP ledger was there to stay even if Ripple the company seized to exist. He added that given XRP ledger is open source, anybody can use it.
Earlier this year, during a discussion at the Tech Crunch Disrupt, Brad Garlinghouse, the CEO of Ripple stated that XRP is fully decentralized and the company only controlled 7% of the public blockchain.
Next, Sarbhai went on to explain the situation in other parts of the world. Specifically, speaking about Thailand, he said that the country has come up with a new asset class called “digital assets”. The country has decided to allow XRP to be traded among 6 other cryptocurrencies.
On similar lines, he said countries like Australia and Philippines, have categorized XRP and other digital assets as either a commodity or cryptocurrency. The Abu Dhabi growth Market [ADGM] has also classified XRP among other cryptocurrencies as commodities. He concluded by stating:
“So we are not really worried about it, to be honest.”
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