Ripple CTO Confirms No Obligation to Hold XRP

David Schwartz, the Chief Technology Officer of Ripple, recently confirmed that the company does not have an obligation to hold XRP, citing security misrepresentation claims surrounding the token.

Ripple’s Role and Responsibilities

Schwartz’s comments emerged amid discussions regarding Ripple’s responsibilities towards XRP distribution, particularly following remarks from Bitcoin advocate Pierre Rochard, who argued that Ripple should not be compelled to act in favor of XRP holders. He suggested that Ripple can liquidate its substantial XRP holdings, even if it may harm retail investors, reinforcing his stance that XRP is not a security.

Business Interests Before Individual Investors

Agreeing with Rochard, Schwartz emphasized that Ripple, like any business, prioritizes its interests. He likened the ownership of XRP to owning early artwork from a new artist, stating:

> “100% correct. IMO, Ripple can, will, and should act in its own interest…”

While investors may wish for artists (or Ripple) to add value, there’s no requirement for them to act at others’ expense. Schwartz noted that Ripple has been in the industry for nearly 14 years and possesses more XRP than can be liquidated quickly, alleviating immediate fears of large sell-offs.

Misrepresentation and Ongoing Legal Issues

Schwartz also dismissed the idea that Ripple could be the only successful crypto company, similar to suggesting Google would reign supreme in the internet space. His statements align with Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), which began in December 2020. The SEC accused Ripple of ensuring that XRP holders benefit from its actions, a claim the company has denied.

In responding to criticism, including from detractors like SauceDaddy, Schwartz pointed out that confusion about Ripple’s role stems primarily from those who claim XRP is a security. He remarked:

> “It’s mostly the ‘XRP is a security’ crowd that deliberately created confusion…”

Further discussions arose regarding whether Ripple owes a duty to XRP holders, with arguments about the issuance of XRP and its relationship to Ripple as a firm. However, it was clarified that the XRP Ledger existed independently before Ripple was established, despite overlaps in the individuals who developed the technology.