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March 6, 2019

Binance CEO Defends Ripple, Says XRP Is Not a Security

By Daily Hodl Staff

Binance CEO Changpeng Zhao says he believes XRP is not a security. In a new ask-me-anything on Periscope, Zhao joked about how often he comments on the digital asset and explained why he thinks XRP is in the clear.

“I think if I talk about XRP any more, I’m going to become one of the XRP armies. But I do want to say something. It’s very typical in our society that as soon as there is any accusation against you, you’re assumed guilty by many parties.

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I think people are aware that there is a lawsuit against XRP on whether they’re a security asset or not. Our judgment is they’re not, and until proven that they are, we listed them, and luckily we actually dragged other exchanges to list them. That’s a good thing. I think that’s a very positive step towards our society that we don’t just judge.

Just because there’s a lawsuit doesn’t mean they’re guilty. So we apply our judgments there, and we are always very supportive of XRP. There are a lot of guys who complain they’re overly centralized, etc. But look at their market. The markets vote with their feet, as I say, and XRP is one of the largest market-cap coins, and it’s like that for a reason.”

Ripple is accused of selling XRP as an unregistered security. On March 1st, a judge ordered the case to stay in federal court. The decision has the potential to benefit Ripple, as corporate defendants are often perceived to get more favorable judgements in federal court.

If the case is decided in Ripple’s favor, it would also give the company more clout in its efforts to definitively prove that XRP is not a security.

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You can watch the full Binance ask-me-anything here.

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