Brad Garlinghouse, the CEO of Ripple, gave several reasons related to why XRP is not considered a security. During a conversation with Monica Long, the head of marketing at Ripple, answered several questions related to the company, regulations and the market. One of the main things he said is that XRP is more decentralized than Bitcoin (BTC) and Ethereum (ETH).
Brad Garlinghouse Talks About XRP
During an Ask-Me-Anything session, Long and Garlinghouse talked about many interesting topics related to the crypto market. During this year, the XRP community has been involved in a discussion on whether XRP is a security or not.
The U.S. Securities and Exchange Commission (SEC) confirmed that Bitcoin and Ether are not considered securities. This is quite important for these two assets that are considered two of the largest in the market. Nevertheless, the regulatory agency did not provide information about XRP, which is currently the second largest crypto in the market.
Garlinghouse commented that XRP is not a security and that it exists independently of Ripple. About it, he said:
“There is a whole bunch of base layer reasons for that. One of the most important I think is… if Ripple the company shuts down, XRP trades on over a hundred exchanges around the world and XRP will continue to trade.”
There have been several comments as well regarding XRP’s centralization around Ripple. About it, Garlinghouse mentioned that XRP is more decentralized than Bitcoin and Ethereum. He explained that Bitcoin mining activities take place in China and there is only one company that controls the mining market. The XRP ledger is more decentralized since Ripple only owns just 4% of the validators of the network. There are other companies involved validating the transactions.
There are some cryptocurrency exchanges such as Coinbase or Gemini that did not add XRP to their trading platforms. This is because there is still uncertainty regarding how to consider the virtual currency. Nevertheless, Coinbase has already mentioned that is analysing the possibility to add XRP support.
During the last few months, XRP was able to surpass Ether as the second largest digital currency in the market. Now, XRP is being traded around $0.37 and it has a market capitalization of $15.01 billion.
