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Chris Giancarlo Declares XRP Is Not A Security | XRP Right Now

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Chris Giancarlo Declares XRP Is Not A Security

J. Christopher “Chris” Giancarlo was unanimously confirmed to serve as Chairman of the U.S. Commodity Futures Trading Commission by the U.S. Senate on August 3, 2017. Former CFTC chairman Chris Giancarlo and Conrad Bahlke of Willkie Farr & Gallagher discuss Ripple and the application of US securities laws to XRP.

Chris Giancarlo

Much like bitcoin and ether, XRP is a digital currency supported by a distributed ledger that uses cryptography to store and transfer assets. However, XRP and the underlying XRP Ledger were designed in 2011 and 2012 specifically as a payment mechanism by software developers who later founded Ripple Labs (Ripple). Ripple today utilises XRP to address liquidity challenges faced by financial institutions, including high transaction fees, long processing times and the need for third-party monitoring interposed by traditional clearinghouses and settlement mechanisms.

William Hinamn – director of division of corporation finance has stated:

whether a promoter has raised an amount of funds in excess of what may be needed to establish a functional network and continues to expend funds from proceeds to enhance the functionality and/or value of the system which the tokens operate. This factor appears to be directed primarily towards digital assets that were offered through an ICO, which would be inapplicable to XRP as XRP and the XRP Ledger were fully operational in 2012 when the XRP Ledger launched. However, even though Ripple holds a large stake of XRP in escrow and funds its operations through the sale of XRP (as well as the sale and licensing of software), this is no different than bitcoin or ether miners selling mined tokens or the Ethereum Foundation using its ether holdings to develop and support the Ethereum architecture.

The market participants recognize the difference between Ripple the company and XRP the digital asset. There is clear evidence that support this claim. When Ripple has developments, the price of XRP is generally unresponsive.

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