Ripple CEO Brad Garlinghouse believes his company can still thrive under a hypothetical scenario where XRP is declared a security by United States lawmakers.

Appearing on episode 439 of the Pomp Podcast, Garlinghouse talked nigh the implications of XRP being declared a security by the U.South. Securities and Exchange Committee, or SEC. He said such a position would run opposite to the prevailing view amid G20 markets.

While acknowledging that "it's very difficult to await at XRP as a security," Garlinghouse said:

"You know if XRP were deemed a security here in the United States that, you know, we accept other G20 markets that have taken a different view. I'thousand not aware of any marketplace globally that thinks that XRP is a security."

Garlinghouse added that "more than 90% of RippleNet customers are out of the U.s.a.," suggesting that a securities designation wouldn't necessarily hinder the visitor'southward underlying business organization.

If XRP were declared a security in the United States, investors (including Ripple) would need to complete broker-dealer registration with the SEC.

XRP'southward regulatory status has been the subject of intense scrutiny for the past few years, with veteran trader Peter Brandt beingness the latest public figure to declare it a security.

On the opposite side of the spectrum, Congressman Tom Emmer, a Republican from Minnesota, argued in August that XRP is non a security.

Ripple has been the subject area of a class-action lawsuit from disgruntled investors challenge that XRP is a security. The lawsuit alleges imitation advertising and unfair competition charges against Ripple. An amended filing from March claimed that Garlinghouse was shopping XRP to prospective investors while simultaneously liquidating his holdings.

XRP is back in the limelight this calendar month post-obit an explosive rally that pushed the cryptocurrency above a multi-year range. Information technology was the subject of heavy profit-taking on Thursday, falling more than 28%.