Calacanis Sparks Crypto Storm: XRP a 'Centrally Controlled Security'

Silicon Valley angel investor Jason McCabe Calacanis has sparked a heated debate in the cryptocurrency community by characterizing XRP as "a centrally controlled security." Calacanis, known for backing over 300 startups including Uber and Robinhood, published his remarks on X in reaction to a January 9 post by Polymarket indicating that Ripple CEO Brad Garlinghouse had recently met with former US President Donald Trump for dinner. Polymarket noted odds of a potential spot exchange-traded fund (ETF) this year, pegging them at 70%.

Citing his discussions with early crypto adopters, Calacanis took issue with both the legitimacy of the digital asset as a decentralized asset and the implications of any favorable regulatory stance. "XRP is a centrally controlled security — is that even a question for anyone here?" he wrote. He further argued for restricting trading to accredited or "sophisticated" investors, contending that this would at least ensure participants are aware of the risks.

Members of the XRP community voiced their objections to Calacanis’ position, challenging his characterization of the digital asset and pointing to the network’s functioning structure. Vet (@Vet_X0), a self-described dUNL validator, maintained that XRP operates similarly to Bitcoin insofar as it is "a neutral, counterparty free" asset. Another X user, brandon (@BlueFoxAlaska), reminded Calacanis that there have already been court findings relevant to the digital asset’s classification.

Calacanis’s remarks once again spotlight the long-running debate over the digital asset’s regulatory status and the extent to which it might diverge from decentralized standards. Though a US court ruling in the ongoing Ripple case has addressed that XRP is not a security, disagreements remain, especially with the Bitcoin "maximalist" community.