Ripple CEO Says Sale of XRP by the Company is an Investment Contract
Brad Garlinghouse, the CEO of cryptocurrency firm Ripple in a recent interview with CNBC claimed that the XRP is an investment contract issued by the company. Garlingouse also reinstated that the US lacks regulatory clearance that has led to the ongoing lawsuit filed by the SEC. He went onto cite the example of many G-20 nations that have gone ahead to frame new regulations around digital currencies.
Talking about the SEC’s accusations of XRP being a security, Garlinghouse explained that if XRP would have been security then buyers of the token would also own a portion of the company which is not the case. He said,
All of the XRP that would ever circulate has already been created, so the company cannot create new tokens if we look from a regulation point of view XRP is an investment contract. Security is something when you buy it you own a part of the company and the profits… that is not true with XRP.”