Aug 31 mins read

Ripple CEO Denies XRP is a Security

Brad Garlinghouse clarifies the relationship between Ripple and XRP

Ripple CEO Denies XRP is a Security

Ripple Logo

Due to the close relationship between Ripple, the global financial payment company based in San Francisco, and its cryptocurrency XRP, there have been rumors that XRP should be classified as a security.

Ripple CEO Brad Garlinghouse denied these rumors at the CB Insights "Future of Fintech" conference on Thursday, stating that Ripple is a company and XRP is an open-source, decentralized technology.

Brad Garlinghouse Brad Garlinghouse, CEO of Ripple

The head of the SEC's corporate finance division, William Hinman, recently stated that Bitcoin and Ethereum are not securities but did not comment on XRP. Garlinghouse emphasized in his interview at the conference that XRP is not a security because it can still function even if Ripple goes bankrupt, it is a decentralized technology, and buying XRP does not give investors ownership in Ripple.

XRP Logo

He also expressed concerns about the centralization and control of Bitcoin, questioning how decentralized it really is if 3 Chinese miners control over 50% of the hashing power. He even suggested that the Chinese government could intervene to exert control over these miners.