Cory Johnson said it first. Ripple and XRP are not the same things; XRP is not a security. And yet, the San Francisco-based company often finds itself repeating this information. The latest time came today, Monday, September 17th. Not only did the head of government and regulatory relations at Ripple today bring back the XRP security debate, but Sagar Sarbhai also noted that the narrative in the crypto industry is changing.
True or false?
Ripple and XRP: Security or Not?
First, Sagar Sarbhai told CNBC on Monday that Ripple does not find XRP to be a security. Sarbhai provided three reasons for this:
- If an investor purchases XRP, that individual will not get a stake in Ripple the software company. Why? “Dividends are not paid out by Ripple.”
- As Cory Johnson said at the start of the summer, Ripple and XRP are two separate entities. If Ripple goes away, the XRP ledger will remain. “XRP ledger is open-source,” said Sarbhai.
- Ripple only owns around 10 out of 150 validators.
The Crypto Industry is Changing
We’ve heard about the XRP security debate for months now. However, Sarbhai did say something relatively fresh and new today, which was interesting.
In the mind of this Ripple executive, the narrative in the crypto industry is changing. A few years ago, according to Sarbhai, the mentality of the crypto space was “blockchain good, crypto bad.” Everyone used to say that blockchain would one day surpass cryptocurrencies.
But according to Sarbhai, that’s all changing. Now, “more policymakers and regulators are [realizing] that there is a strong benefit that digital assets and cryptocurrencies bring.”
It doesn’t look like this Ripple executive is the only one who thinks this, too. This week, Jack Ma of Alibaba said that blockchain is going to become “meaningless” unless it helps the environment.
There are two main takeaways from this XRP news. First, is the difference between Ripple and XRP now recognized, or is Ripple the company going to have to remind the world of the difference for the rest of its lifetime?
And two: is the crypto industry really changing?
What do you think?
Featured Image: Depositphotos/© Melpomene