Brad Garlinghouse, CEO of Ripple, provided clarity on the regulatory status of XRP and Ethereum amidst the company’s ongoing legal battles with the SEC. His remarks carry significant importance, particularly as Ripple approaches the release of its stablecoin.
During a discussion with Michael Arrington of Arrington Capital, Garlinghouse emphasized that neither XRP nor Ethereum should be considered securities. This declaration is critical as Ripple readies itself to introduce a stablecoin, reaffirming its position within a complex regulatory landscape.
Garlinghouse reiterated Ripple’s unwavering support for XRP, dismissing any doubts about the company’s commitment. Despite a July 2023 court ruling that relieved Ripple by deeming XRP not a security, certain institutional sales of XRP were still flagged as unregistered securities.
In parallel, Ethereum confronts its own regulatory hurdles, with Consensys recently filing a lawsuit against the SEC to preempt any claims that Ethereum is an unregistered security.
As Ripple prepares for its next phase, it hints at advancements in its XRP Ledger ecosystem. Ripple CTO David Schwartz discussed upcoming developments such as the Ripple stablecoin, automated market makers (AMM), and lending protocols during the same conference.
The Ripple community eagerly anticipates further details, which are anticipated to be disclosed at the XRPL Apex event in Amsterdam.
The proposed Ripple stablecoin, backed by US dollar deposits and short-term US government treasuries, aims to cater to institutions unable to directly engage with digital assets but interested in leveraging the XRP Ledger. According to Vet, an XRPL dUNL validator, the stablecoin could revolutionize institutional and decentralized finance by harnessing the ledger’s decentralized exchange and AMM features.
As Ripple navigates regulatory challenges and market dynamics, the launch of its stablecoin could signify a significant turning point for the company, potentially opening up new avenues for growth and adoption within the XRP Ledger.
