The company has in custody a guarantee fund with 50,000 million XRP. The CEO of Ripple believes that the United States is at risk of remaining out of the cryptocurrency market.
Ripple CEO Brad Garlinghouse recently stated that the company is open to new ideas and insights on its XRP reserves. They have a whopping 50 billion XRP in a fund under their custody.
The executive said that Ripple does not dismiss any approach that is beneficial to its environment. They would even be willing to burn or distribute the funds in their reserve fund. “It is possible to evaluate everything as things with a new meaning for the XRP ecosystem emerge,” he added.
In 2017, Ripple placed 55 billion XRP in a deposit guarantee fund to create security over the supply in circulation. They sought to allay fears that bulk assets could saturate the market. The company provided details on the matter in a statement that it published at the time.
The company then set a schedule to release 1 billion XRP each month. They also contemplated selling a part to finance their operations and invest in startups and return the rest to the fund.
Garlinghouse explained that they created the guarantee fund to provide transparency to the XRP ecosystem. He considers it necessary to fully understand the message of this action so that other projects in the cryptocurrency industry can replicate it.
There are currently almost 6.8 billion XRP in the company and there are around 47.8 billion XRP left in its escrow fund. According to the company’s website, they had already distributed more than 46 billion XRP on April 11th.
The United States Could Remain Out of the Cryptocurrency Market
Garlinghouse also spoke about the lawsuit that the US Securities and Exchange Commission (SEC) filed against Ripple. They accuse the firm of selling XRP, which they classify as a security, and for selling the token without registering it as an investment offering.
In this regard, the CEO of Ripple spoke about the baseless and flawed arguments that the regulator is using against the firm. He said that such a situation could put the nation out of the cryptocurrency market.
Given that the US judicial system is usually not fast enough, the executive believes that the legal battle will continue for a long time. For that reason, he hopes that the US regulation will gain clarity and certainty about the cryptocurrency ecosystem over time.
Additionally, Garlinghouse said that regulators should admit that nothing in the Securities Act of 1933 refers to cryptocurrencies. Likewise, he believes that they should ask Congress to clarify the statute. However, the SEC has decided to make an unfounded determination instead.
The company is under scrutiny from regulators but they consider that their future is secure, said the CEO of Ripple. The executive clarified that they do not depend exclusively on the US market but also on business with other countries.
By Alexander Salazar