Ripple's Critic: XRP Not a Security, Bitcoin Maximalists Clash
1min read Ripple's stern critic, Pierre Rochard, has recently weighed in on the ongoing debate surrounding the classification of XRP, asserting that the token does not meet the criteria for a security. As the vice president of research at riot platforms and a well-known critic of Ripple, Rochard argues that the company behind XRP, Ripple, is not obligated to provide investors with any utility or benefits, making it ineligible for security status.
In a recent statement, Rochard explained that XRP holders do not have any legal claims or rights over Ripple's operations. He noted that the company is not required to offer investors returns or additional benefits, reinforcing his view that the token does not fall under securities regulations. Rochard further highlighted that individuals who hold XRP have no recourse if the company or other market participants decide to sell off large quantities of the token.
Rochard's remarks come amidst ongoing criticism from the crypto community, particularly from Bitcoin proponents who challenge the legitimacy of XRP and other altcoins. His stance on XRP's classification as a security has sparked further debate within the industry, with some agreeing with his assessment and others remaining skeptical.
The ongoing debate over XRP's status has persisted for years, with the U.S. Securities and Exchange Commission (SEC) accusing Ripple of selling unregistered securities. However, in 2023, Judge Analisa Torres ruled that secondary sales of the token did not constitute securities transactions. This decision was a partial victory for Ripple and weakened the SEC's case against the company. Despite the legal ruling, skepticism remains within the cryptocurrency community, particularly among Bitcoin maximalists who believe that XRP and similar tokens should not be included in strategic financial plans due to their perceived centralization and governance structures.
Recent developments have reignited discussions surrounding the token's role in the industry. On Sunday, it was announced that XRP would be part of a multi-token strategic cryptocurrency reserve, a move that has been met with resistance from Bitcoin advocates. Ripple CEO Brad Garlinghouse has openly supported the idea of a diversified crypto reserve, rejecting Bitcoin maximalism and believing that a multi-asset approach will strengthen the digital asset industry and increase global adoption. Garlinghouse has also dismissed criticisms from Bitcoin-only supporters, asserting that Ripple's efforts pave the way for a more inclusive financial system.
Rochard 