SNEAK PEEK
- Jason Calacanis believes that XRP should be classified as a security.
- Ripple’s legal battle with the U.S. SEC is expected to cost the company $200 million in legal fees.
- Ripple is focused on promoting the adoption of XRP.
Jason Calacanis, a renowned venture capitalist and entrepreneur, recently took to Twitter to assert that XRP is indeed a security. He expressed his unwavering confidence in this statement while commenting on Ripple’s expenses in its ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC).
XRP is obviously a security
It would have cost little for the Ripple team to have registered it as a security and played by the rules —- like everyone else in the industry does all day long $xrp pic.twitter.com/Yxga686tBZ
— @jason (@Jason) May 9, 2023
Calacanis’ tweet suggests that he believes XRP should be classified as a security under U.S. law, which would subject it to additional regulations and legal scrutiny.
In his recent disclosure to CNBC, Ripple CEO Brad Garlinghouse revealed that his company will be shelling out a staggering $200 million to defend itself against the SEC’s legal onslaught.
These hefty expenses prompted entrepreneur Jason Calacanis to speak out, expressing his concerns over the exorbitant costs of such lengthy litigation. Ripple’s legal battle has become a financial predicament; only time will tell if they can weather the storm.
Jason’s views on Ripple were met with opposition from experts in the crypto industry. Mike Belshe, the CEO and co-founder of BitGo, a digital asset trust company, dismissed Jason’s comments as stemming from an “ignorant view.” Belshe further criticized Jason by stating that he should try to register a digital asset as security before making such “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
The opposition from Belshe highlights the complexity of the regulatory landscape surrounding cryptocurrencies. Registering a digital asset as a security is a complex process, and different countries have taken different approaches to regulating cryptocurrencies.
Despite this uncertainty, Ripple has been working to promote the adoption of XRP as a currency rather than a security. The company has partnered with several financial institutions worldwide to develop payment solutions using XRP and has made significant progress in this area.