Pro-Bitcoin hedge fund manager Mark Yusko expresses mixed sentiments about XRP, acknowledging its potential but criticizing its security issuance.
In a recent interview, Mark Yusko, a pro-Bitcoin American hedge fund manager and Managing Director at Morgan Creek Capital Management, shared his thoughts on the XRP Ledger (XRPL) and his reservations about it.
Yusko expressed mixed sentiments when asked about his views on the XRPL, admitting to struggling with his stance.
“I struggle with XRP,” he proclaimed, acknowledging the criticism he receives from the XRP community for his perspective.
An XRP enthusiast shared a snippet of the interview with the crypto community.
Here's Mark Yusko struggling to understand @Ripple and the only digital asset with legal clarity in the United States, yet seems to be well versed in the ongoing litigation.
" I struggle with #XRP " – Mark Yusko
— Subjective Views (@subjectiveviews) August 8, 2023
XRP Could Be a Superior Rail
Meanwhile, Yusko expressed openness to the concept that XRP could be a superior rail for financial institutions like banks, brokerage firms, and insurance companies if integrated effectively. He admires the ideology behind XRP.
However, he claimed there seems to be a lack of substantial evidence to support XRP’s widespread adoption despite numerous announcements.
“…It can work if you can get banks, brokerage firms, and companies to integrate (XRP) into it. But at least so far as I can tell, there is very little evidence, a lot of announcements but very little behind it.”
Despite his reservations, the pro-Bitcoin investor acknowledged the concept’s elegance and praised Ripple CEO Brad Garlinghouse’s intellect.
“…I think the idea is elegant; I think Brad is a very smart guy,” Yusko added.
Yet, he expressed his disapproval of how XRP was issued. He sided with the US Securities and Exchange Commission’s (SEC) stance on XRP security issuance.
“I think I hate the way they issued it (XRP), and so does the SEC because they deemed it as security issuance, which it was,” he remarked.
Regarding the ongoing legal case, Yusko addressed the appeal process, noting that the US regulator seeks to appeal against certain parts of the ruling. He emphasized that the appeal’s outcome remains uncertain and depends on the legal arguments presented.
Yusko also highlighted the case’s complexity, noting that even though some parties might claim victory, the situation is not straightforward. He speculated that while Ripple may not be required to forfeit all profits, there might still be a financial impact due to fines.
However, he asserted that for crypto traders who have been trading XRP on exchanges, the ruling from Judge Torres is a big win.
XRP Community Reacts
In response to these statements, a prominent XRP influencer Dig Perspectives chimed in to clarify the court’s ruling regarding XRP.
“For the record, the court did NOT find that XRP was a security,” the influencer proclaimed. He pointed out that the ruling only noted that Ripple’s early sales of XRP to institutions constituted unregistered securities offerings, and not that XRP itself is a security.