Ripple Responds to Questions about XRP Exclusion from Liquidity Hub.
The Silicon Valley firm Ripple cited the regulatory uncertainty in the United States for Skipping XRP on Liquidity Hub.
Ripple, the technology company behind XRP, has stated the reason behind its deliberate decision to exclude XRP from the newly launched Liquidity Hub product. The firm has indicated the ambiguous regulatory environment surrounding the asset in the United States as the main cause for this decision.
The official Liquidity Hub was recently updated to accommodate this information, as disclosed by Ripple in a follow-up tweet.
We have updated the Liquidity Hub blog with more info on assets that are available today and why.
— Ripple (@Ripple) April 14, 2023
According to information on the page, Ripple intends to consider XRP for possible inclusion in the Liquidity Hub solution in the future. This addresses community concerns about XRP being completely excluded.
Ripple clarified that XRP’s inclusion in the product is contingent on the asset’s regulatory clarity in the United States.
Notably, if the Ripple v SEC case concludes with a consensus that XRP is not a security, Ripple could incorporate the XRP into the Liquidity Hub product. However, if the judge rules that XRP is a security, it will likely remain excluded from the solution.
Recall that Ripple introduced the product in November 2021, noting that it would support XRP and five other assets when it eventually launches. The absence of XRP upon the launch of the product raised questions among XRP proponents.
Deaton Makes a Case for Ripple
Attorney John Deaton weighed in on the recent situation and offered his opinion, drawing parallels to previous cases, to shed light on the rationale behind Ripple’s decision.
Deaton noted that Daniel Schulman, President and CEO of PayPal, met with Jay Clayton, the then-chairman of the U.S. SEC, just before PayPal launched Crypt. Deaton pointed out that PayPal conveniently left out XRP in its digital asset offering because it knew the lawsuit was coming. Notably, Robinhood also does not support XRP.
The CEO of PayPal met w/the SEC when Clayton was Chairman before PayPal offered Crypt just before the lawsuit dropped. PayPal didn’t list XRP. Why? The lawsuit was coming. Then Robinhood. Now Ripple’s Liquidity Hub. The lawsuit has been a big deal. And I’m not talking about price https://t.co/u9TsPfKRIQ
— John E Deaton (@JohnEDeaton1) April 14, 2023
Considering these facts, Deaton emphasized that the ongoing SEC litigation has significantly hindered XRP’s advancement. While acknowledging the disappointment felt by XRP supporters, given Ripple’s close association with the asset, Deaton maintained that the issue is not about Ripple’s stance on XRP but rather a matter of the law.
I’ve seen a lot of comments, many of them angry about @Ripple not listing #XRP w/Liquidity Hub after selling billions. Many are pissed I think b/c they were vocal against @coinbase for suspending #XRP. I wasn’t surprised and that’s why I said it’s no doubt about the case. https://t.co/u9TsPfKRIQ
— John E Deaton (@JohnEDeaton1) April 14, 2023
Deaton emphasized that Ripple’s expenditure of $100 million to prove that XRP is not a security indicates that the firm does not consider XRP a security. However, he noted that the issue is not Ripple’s opinion on XRP but rather the law and the risk perception among other American-based companies.
Notably, XRP’s presence in the Liquidity Hub at this point could discourage US-based businesses from using the product due to concerns about potential sanctions from the SEC or other regulators, given the regulatory uncertainty surrounding the asset.
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