- Ripple CEO Brad Garlinghouse has clashed with venture capitalist Jason Calacanis over XRP’s status.
- Garlinghouse has questioned Calacanis’ grasp of securities law.
- Ripple and the SEC have disputed whether XRP should be classified as a security.
The legal status of digital currencies has been a contentious issue, with regulators and industry experts struggling to define their classification. The debate over XRP’s classification has resurfaced, this time with a fiery Twitter exchange between Ripple’s CEO, Brad Garlinghouse, and prominent venture capitalist Jason Calacanis.
Garlinghouse Criticizes Calacanis’ Grasp of Securities Law
Calacanis sparked controversy by asserting that XRP is unequivocally a security, which has only fueled the ongoing legal battles between Ripple and the U.S. Securities and Exchange Commission (SEC).
In response, Garlinghouse criticized Calacanis’ grasp of securities law and accused him of making uninformed and contentious statements. Garlinghouse contended that Calacanis’ claim was incorrect and shameful, as there is currently no regulatory framework for registering digital assets in the United States.
Garlinghouse also hinted at Calacanis’ history of making inflammatory comments and trolling topics he may not fully understand. This heated exchange highlights the ongoing debate surrounding XRP’s classification and the lack of clarity around regulatory frameworks for digital assets in the U.S.
Garlinghouse Reveals Ripple’s Preparations for Legal Battle
The legal dispute between the SEC and Ripple centers on whether XRP should be considered a security or a digital currency. The SEC has accused Ripple of conducting an unregistered securities offering through the sale of XRP, taking a firm stance that the token is a security.
On the other hand, Ripple has vehemently defended its position, arguing that XRP is a digital currency. At the Dubai Fintech Summit, Garlinghouse revealed that Ripple is preparing for a legal battle that could cost up to $200 million.
On the Flipside
- The SEC’s lawsuit against Ripple has been in progress for several years, and the agency has maintained that Ripple’s sale of XRP constitutes an unregistered securities offering.
- While Garlinghouse disagreed with Calacanis’ claim that XRP is a security, several ongoing legal disputes surround the token’s classification.
Why You Should Care
The recent heated Twitter exchange over the status of XRP highlights the ongoing debate surrounding its classification and the lack of regulatory clarity for digital assets in the United States.
Sponsored
The outcome of this legal tug-of-war between Ripple and the U.S. Securities and Exchange Commission (SEC) will have significant implications for the broader crypto market, as it could set a precedent for how digital assets are regulated.
To learn more about Ripple’s recent expansion in the Middle East with on-demand liquidity and the Swell Global event, read here:
Ripple Expands in the Middle East with On-Demand Liquidity and Swell Global
To discover XRP whales‘ recent moves despite the crypto market sell-off, read here:
