Ripple CEO: The Regulatory Field isn’t Flat for All Cryptocurrencies
Brad Garlinghouse, the CEO of Ripple, in a recent interview with Frank Chapparo of The Scoop, has said his might have jumped the rope for claiming 2019 was the year when banks would adopt the On-Demand Liquidity (ODL), a tool that uses XRP for cheap and instantaneous flow of value. He further added that the current regulatory climate that seems to favor Bitcoin presented headwinds slowing down progress. Even so, their performance has been decent considering how challenging 2020 is for business.
Ripple is a for-profit company and the majority holder of XRP, the third-most valuable coin powering ODL. The problem is, US regulators--including the Securities and Exchange Commission (SEC), haven't guided the exact category of other coins besides BTC and ETH. This opaqueness is negatively impacting Ripple as financial institutions can’t use a solution that has no public backing or guidance from regulators with whom they are compliant. Still, over 300 banks are plugged on the RippleNet and more than a dozen use ODL. Despite the Coronavirus scourge, Brad Garlinghouse said their performance has been decent as they get “two production financial contracts a week.”
Impact on the XRP Price:
Neutral. Unless there are clearer laws in the United States classifying what most cryptocurrencies are, entities like Ripple--heavily invested in building an ecosystem around XRP, would have known their status. This way, they will know whether XRP is a utility or a security under US laws and proceed accordingly. The current impasse weighs negatively on XRP’s prospects.
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