Venture Capitalist asserts XRP is security – The debate as to whether XRP, the crypto tied to Ripple is security or not continues to get heated. Earlier today, a top VC Jason Calacanist, took to his Twitter account to drop his own opinion on the matter.
He stirred controversy among the Ripple community when he asserted that “XRP is obviously a security.” Also, he went ahead to condemn the Ripple team for not registering the asset as a security. He pointed to the fact that it would have only “cost little” for the blockchain giants to play by the rules.
XRP is obviously a security
— @jason (@Jason) May 9, 2023
Given the ongoing Ripple vs. SEC court case, Jason’s opinion only makes it worse for Ripple and its community. The case between the Commission and the blockchain company has been going on since 2020.
The regulatory watchdog accused Ripple of providing unregistered securities in the form of XRP. However, the key point of the argument is whether the token is a security or not.
The SEC’s position has been that XRP is a security and should be properly registered as such, but the blockchain company maintains that it hasn’t broken any rule as XRP is a digital currency.
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Reactions from the XRP community
The tweet made by Jason wasn’t well received by the loyal XRP holders and community members on Twitter. There were several replies attacking the top VC. One user called his view “ignorant” and urged Jason to try to register a digital asset as security before making ridiculous statements.
Ignorant view. Go try to register a digital asset as a security before you make ridiculous statements like this.
— Mike Belshe (@mikebelshe) May 9, 2023
Some other claims that Jason regularly makes “misinformed comments” and then makes them seem like authority statements. Meanwhile, others assert that only the court can decide if XRP is a security or a digital currency.
You must be new here, regardless of what I think about Ripple, there's no easy way to register a digital utility token with the SEC. I guess the courts will decide in the end.
— Rahul Sood 🏴☠️ (@rahulsood) May 9, 2023
Ripple bracing up for legal expenses
Meanwhile, at the Dubai Fintech Summit, Ripple CEO, Brad Garlinghouse had already revealed that the blockchain company is already getting ready for a whopping $200 million in legal expenses in case it comes.
The huge cost of the battle can be related to the complexity of the lawsuit. Also, the involvement of top law firms in the case can also be a major reason.