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Ripple Chief market strategist: XRP is ‘absolutely not a security’

In an interview with CNBC, Ripple chief market strategist Corey Johnson has categorically denied that XRP constitutes a security and that Coinbase had refused to list the asset on such grounds.

While several rumors have previously predicted that US-based cryptocurrency exchange Coinbase had questioned XRP’s status as a possible security – and may have even refused to list the asset until receiving further clarity – Ripple Foundation’s chief market strategist Corey Johnson has now refuted such claims in a new interview with CNBC.

According to Johnson, Ripple and Coinbase had mutually discussed the prospect of listing XRP, though discussions did not include reference to the token’s status with financial regulators.

In the interview, Johnson claimed that “Coinbase never ever raised the issue of whether or not XRP is a security in our discussion about listing XRP. We’re 100 percent clear, it’s not a security. We don’t meet the standards.”

Coinbase has asserted that its dicussions with Ripple centered around broader requirements for listing new assets, and that the two firms did not specifically discuss XRP’s official definition.

Johnson’s comments come on the back of regulatory pressure in the US that has derailed several initial coin offerings (ICOs); the US Securities and Exchange commission has subpoenaed several ICOs and cryptocurrency exchanges under the premise that such operations had been selling unregistered securities.

Ripple, traditionally, as referred to XRP as a ‘digital asset’ rather than a cryptocurrency. Some parties have argued that XRP might well constitute a security given that the asset was first distributed through online forums, while others have countered that view with the arguement that Ripple’s business activities do not directly influence the value of XRP itself.

Following rumours last month that indicated that Coinbase would proceed to list XRP as a new asset, the company swung back by clarifying that such a procedure is informed by its Digital Asset framework, wherein a committee of internal experts is responsible for determining whether new assets would ultimately be added to the platform.

It remains uncertain as to whether XRP will eventually be listed on Coinbase, or whether the US Securities and Exchange Commission would ultimately proceed to label the asset as a security in any event.