Attorney John Deaton and top venture capitalist Jason have recently engaged in a debate regarding whether or not Ripple’s XRP is a security. Jason took to Twitter to state that XRP is obviously security and that it would have been easy for the Ripple team to register it as such and follow the industry rules.
In response, Deaton pointed out that while Ripple may have sold XRP as a security, it is simply a line of code within the software, making registration as a security difficult to navigate.
The conversation continued with community members questioning Deaton’s stance, including one member who wished Deaton would have pressed on the double standard with Algo.
Deaton responded by asking why Ripple is not listing XRP within its Liquidity Hub and whether or not the community would be equally upset with Ripple for not doing so.
Ripple CEO Criticizes Jason’s Understanding Of Securities Law
CEO at Ripple Brad Garlinghouse also weighed in on the discussion, criticizing Jason’s understanding of securities law and stating that there is currently no framework to register digital assets in the US.
Jason defended himself, citing his experience investing in startups and forming the largest angel syndicate in the world.
Founder of ShapeShift.com, Erik Voorhees, also entered the conversation, noting that registering XRP as a security would have resulted in no exchanges being able to support it, ultimately leading to the project’s demise.
He compared the situation to Uber breaking laws and creating a service that reduced drunk driving more than all government programs combined.
However, the debate surrounding XRP and whether or not it should be classified as a security continues to be a hot topic within the crypto community.
While some believe that registering XRP as a security would have been the appropriate course of action, others argue that doing so would have hindered its adoption and success.
Nevertheless, as the conversation evolves, it will be interesting to see what stance regulators take on the matter and how it will impact the future of XRP.
Related Reading | Ripple And Whales Transfer 218 Million XRP Amidst Price Recovery