Amidst Ripple's intense legal encounters with the US Securities and Exchange Commission (SEC), Garlinghouse's comments carry significant weight, especially with Ripple nearing the launch of its stablecoin.
Ripple CEO Brad Garlinghouse: XRP Is Not a Security, Stablecoin Coming
Garlinghouse, in a conversation with Michael Arrington of Arrington Capital, stated that neither XRP nor Ethereum are securities. This assertion is crucial as Ripple prepares to introduce a stablecoin, underscoring its stance in a complex regulatory environment.
“Anyone who thinks Ripple is not 100% behind XRP is just missing the point. They have lost the plot. We are totally committed and we will remain totally committed,” Garlinghouse said.
The ongoing debate regarding the classification of digital assets like XRP and Ethereum has seen various developments. Notably, a July 2023 court ruling partially relieved Ripple by declaring XRP not a security. Still, it pointed out that certain institutional sales of XRP were unregistered securities sales.
Meanwhile, Ethereum faces its challenges. Consensys recently sued the SEC, seeking a declaration to preempt any claims that Ethereum is an unregistered security.
As Ripple gears up for the next phase, the fintech giant is teasing advancements in its XRP Ledger ecosystem. At the same conference, Ripple CTO David Schwartz discussed the upcoming Ripple stablecoin alongside innovations in automated market makers (AMM) and lending protocols.
The Ripple community is keenly awaiting further details, which are expected to be unveiled at the XRPL Apex event in Amsterdam.
The proposed Ripple stablecoin, backed by US dollar deposits and short-term US government treasuries, is tailored for institutions unable to utilize digital assets directly but eager to leverage the XRP Ledger. According to Vet, an XRPL dUNL validator, the stablecoin could revolutionize institutional and decentralized finance by utilizing the ledger's decentralized exchange and automated market maker features.
As Ripple continues to navigate through regulatory scrutiny and market dynamics, the launch of its stablecoin could mark a pivotal moment for the company. It could foster new avenues for growth and adoption within the XRP Ledger.
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