Ripple's XRP is not a security, according to Minnesota Representative Tom Emmer. Emmer, who is the chairman of the National Republican Congress Committee (NRCC) said this while running the first cryptocurrency council.
"My position is very clear, XRP is not a security"
The question of whether XRP is a security or not has been held for a long time in the cryptocurrency market without any regulatory body finally clarifying the status of the asset.
XRP is now the third largest cryptocurrency with a market capitalization of $ 12 billion. Although Ripple, the blockchain company behind XRP, was valued at $ 10 billion after the Series C funding round last December, the company continues to finance itself by selling the massive hoard of XRP it still owns.
If the Securities and Exchange Commission (SEC) ultimately decides to regulate, or not regulate, XRP as a security, the decision could greatly affect the price of the cryptocurrency, in addition to affecting the relationship between Ripple and its strategic clients. However, Ripple CEO Brad Garlinghouse has in the past given reasons to justify that XRP is not a security.
Now, Congressman Tom Emmer also shares his thoughts on the subject. According to him, the cross-border payments token is not a security.
“First of all, my position is very clear. XRP is not a security, okay? "
He then cited the lack of middlemen as one of the reasons he loves XRP:
"One thing I love about XRP, and there is a lot that I love, is that you don't need a middle man."
Notably, former CFTC Chairman Christopher Giancarlo co-authored a lengthy article in mid-June that explains why XRP does not qualify as a security.
The obvious challenge Ripple is currently facing
Ripple's Brad Garlinghouse was also part of the virtual town hall meeting with Tom Emmer, along with other industry executives such as Circle CEO Jeremy Allaire.
When asked what the biggest challenge facing Ripple today is, Garlinghouse pointed to the lack of regulatory clarity in the United States on how the SEC will classify cryptocurrencies other than bitcoin and ethereum. It has been more than two years since the SEC declared that bitcoin and ethereum are not a security.
"The absence of that regulatory framework restricts innovations, and I think having that clarity certainly allows companies to invest and accelerate the activity that is happening organically, but it will happen more quickly."
According to Congressman Emmer, the fact that two years have passed and regulators in the US remain silent about the prospect of crypto regulation is "absolutely unacceptable." As a result, companies, including Ripple, may be forced to explore other countries that have crypto-friendly regulations.
“The money will go where it is easiest to flow. And the more obstacles the government puts up (and one of them is simply inaction), the fewer opportunities we have to position the United States as a leader, ”added Emmer.
It is worth mentioning that Emmer will accept cryptocurrency contributions for his campaign. Garlinghouse promised that Ripple would make donations to Emmer's campaign using the XRP cryptocurrency.
The entry US Congressman Tom Emmer: "XRP is not a security" was published first in Crypto report.