Amid Ripple Labs’ decisive lawsuit with the Securities and Exchange Commission (SEC), the founders of XRP have received support from a notable source – former U.S. Treasurer Rosie Rios.
For the “XRP Army” (passionate XRP investors) this may not come as a surprise. The 43rd Treasurer of the United States, who served seven years in President Barack Obama’s administration until 2016, joined Ripple Labs’ board of directors in May.
However, her latest comments in the cryptoversum have caught some attention. While support for crypto XRP is expected for payment solutions, some of their other comments have polarized for the rest of the room.
When Rios posted her thoughts on Twitter on September 26th, Rios underscored her belief that XRP has a clear benefit – making cross-border payments easier – and at the same time dares to try “other cryptos” that they believe are purely speculative.
And that includes Bitcoin, judging by the hashtags on your tweet …
The main purpose of XRP is to make cross-border payments easier, while other #Cryptos find their value in speculation. China’s latest move brings home that point. #Ripple #Ripplenet #Bitcoin
– Rosie Rios (@RosieRios) September 26, 2021
However, others have pointed out that Bitcoin, for example, is now used as legal tender in El Salvador and for lightning-fast cross-border payments to and from the United States. (Though XRP proponents are quick to point out that XRP has been able to do the latter for years.)
A week ago I watched Bitcoin making cross-border payments on the lighting network almost instantly and almost free of charge. If that’s the main purpose of xrp, why do we still need it?
– CryptoKnight 🧲🌋 (@AbhLafiel) September 26, 2021
And to take it further from the realm of pure speculation, Bitcoin’s primary narrative as a store of value still holds true for many and is getting stronger every year … right Michael Saylor?
While most cryptos are undoubtedly highly speculative assets, it can be argued that the tar here is applied a bit lightly and loosely with a wide brush. Top blockchains are bursting with usefulness, especially Ethereum with its broad ecosystem of decentralized financial and NFT transactions.
Rios received many responses, particularly from the defenders of Bitcoin and Ethereum. To her credit, however, she confirmed a day later that other crypto developers are at least “pursuing” real use cases and benefits.
Would like the IMO to clarify. While Ripple is dedicated to the cross-border use case, developers around the world are pursuing different use cases on a daily basis, including store of value, medium of exchange, etc. for multiple blockchains / cryptos.
– Rosie Rios (@RosieRios) September 27, 2021
A question of security and credibility
To recap, the SEC previously sued Ripple Labs in court for believing the company has historically facilitated and benefited from the sale of an unregistered security. The Commission claims that XRP is certainly a security.
However, Ripple has always strongly denied that it ever offered or sold XRP as an investment and has stated in court that “XRP holders have no right to acquire, own or own any interest in, Ripple’s assets future profits of Ripple. “
In the first of her two tweets, the former treasurer also referred to China’s recent crypto crackdown, which late last week spread fear, uncertainty and doubt through the crypto market, which it still seems to be trying to bounce back from.
Whether China’s repeated crypto stance will somehow validate XRP’s cross-border payment utility and bring home the speculative nature of other cryptos after Rios’ tweet is questionable.
But from Ripple’s point of view, it is a useful thing for someone with such clout, credibility, and connections to point this out as the currency utility flies in the face of security classification.
The lawsuit continues between the SEC and Ripple Labs. Its result, which we probably won’t get until next year, could have a huge impact on the crypto space and the treatment and regulation of cryptos in the US.
The head of the commission, Gary Gensler, firmly believes that the vast majority of cryptos are in fact securities and should fall under the jurisdiction of his regulator.
Opinion currency: Former U.S. Treasurer Rosie Rios (Getty Images)
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