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Ripple’s Brad Garlinghouse sheds light on the “XRP is a security” argument

Anvita M V



Ripple's Brad Garlinghouse sheds light on the "XRP is a security" argument
Source: Unsplash

Recently, the CEO of Ripple, Brad Garlinghouse and Michael Arrington, Partner at Arrington XRP Capital appeared on stage with Editor of Techcrunch, Mike Butcher at the Techcrunch’s Disrupt conference in San Francisco. The trio discussed the SEC, crypto-libertarians, Bitcoin [BTC], and resistance to Ripple and XRP. Arrington also spoke about his decision to choose XRP for his hedge fund project.

Speaking about the Securities and Exchange Commission [SEC] and speculations of XRP being a security controlled by Ripple, host Mike Butcher asked Garlinghouse what would happen “if the SEC decided to declare XRP a security?”

In response, Garlinghouse first began by defining what security really means. He said:

 “Security is something that represents ownership in a company that gives you rights to dividends, give you rights to governance, things like that.”

The CEO also asserted that “XRP and Ripple are two separate things”. Giving an example, he stated Ripple has many shareholders that include Google Ventures and also several banks that have invested, and they own shares of Ripple, the company.

He further added:

” When you buy XRP, that doesn’t give you any rights to the profits or ownership of Ripple the company.”

According to him, there are multiple air gaps between the SEC and Ripple. Also, he said that the amount of misinformation on the particular subject was profound.

Further, he spoke of the time when the company hosted an all hands a few months ago where they discussed the fact that even if Ripple were to shut down tomorrow, the XRP ledger would continue to operate on its own. Brad said:

 ” So if XRP is a security, it’s a security of what?”

He also spoke about Coinbase and XRP, saying that, if a company has data that could help influence the price, then maybe that is more like a security. According to Brad, the irony of the situation here is that Coinbase is one of the major drivers of infliction of XRP. He also explained that there are rumors about whether Coinbase will list XRP or not. He raised a question saying:

“So does that mean XRP is the security of Coinbase or Ripple?”

He concluded the discussion by stating that XRP is not a security and they had clear facts on their side and he was pretty accurate. As time goes by, he believes that it will become clearer and therefore he does not spend a lot of his time worrying about it.

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Anvita Mysore Vadiraj is a full-time content writer at AMBCrypto. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies.


Ripple’s initiative invests in Bolt Labs to improve secondary payment channels and expand interoperability




Source: Pixabay

Ripple’s arm, Xpring which invests and incubates in companies and individuals which help improve the XRP ecosystem, invested in Bolt Labs. With the new investment, Xpring hopes to develop solutions that will help improve the security of secondary payment channels and increase the interoperability by integrating with the ILP.

Bolt is a private, off-chain scaling solution which was built on top of Z-cash, a privacy-focused cryptocurrency, has attracted more than a few well-known investors in the crypto-space and Ripple’s Xpring is one among them. In a blog, Bolt Labs said that their solution will focus not only on ZCash but also other publicly available cryptocurrencies that do not have inherent on-chain privacy features.

It also stated:

“The potential for these implementations to be networked together with technologies like Interledger opens the potential further for cross-chain interactions with these privacy guarantees baked in.”

The above statement suggests that they might have a “potential” implementation for these on Interledger Protocol [ILP]. ILP was created at Ripple developed by the Interledger W3C Community Group. ILP aims at connecting two different blockchains, to integrate two different ledgers and have seamless operations between them.

This would vastly benefit the payments industry, which is facing a revolution at the hands of a nascent technology like blockchain. Ripple, a payments provider, which is leveraging cryptocurrency and blockchain to facilitate faster payments, would benefit largely from this partnership. In addition, this could also signify a potential development on the  XRP Ledger and its on-chain/off-chain privacy and the currency, XRP.

A Twitter user @XRPCentre tweeted:

“If the solutions being developed by the company are able to improve the privacy of the ILP transactions, they would also be enhancing the privacy of XRP/ILP payments, which is a very demanded feature…. It’s all about interoperability and destroying network effects. If ILP succeeds in being the best protocol for cross-protocol/ledger transactions, you’d naturally search for the best asset therein.”

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