Ripple’s Liquidity Hub Launch Sparks Controversy: Chief Legal Officer Addresses Criticisms

Last week Ripple, the cryptocurrency company behind XRP, announced the launch of its new product, Liquidity Hub.

The decision to omit XRP from the list of cryptos available on Liquidity Hub divided the XRP community, with some criticizing the blockchain company for not including the digital currency in its new product.

Yesterday, Stuart Alderoty, the Chief Legal Officer at Ripple, addressed some of these concerns on Twitter. He clarified that Liquidity Hub is an enterprise product designed for institutional customers, not retail customers. He also explained that the target customers for Liquidity Hub are mainly institutions in the US that want access to a variety of tokens like BTC, ETH, and stablecoins.

Alderoty further explained that XRP does not currently have regulatory clarity in the US, which is important for enterprise customers. He stated that Ripple is keen to support XRP in Liquidity Hub when they can provide a good customer experience and when there is regulatory clarity.

The lack of regulatory clarity for XRP in the US is due to a long-running lawsuit between Ripple and the US Securities and Exchange Commission (SEC). At the end of 2020, the SEC accused Ripple of breaking securities laws by selling XRP to the public. Ripple asserts that XRP is not a security.

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Speculation has been growing recently that a decision in the Ripple vs SEC case could be imminent, with some reports suggesting that a ruling could come in the next few weeks. The outcome of the case could have significant implications for the cryptocurrency industry as a whole, as it could help to clarify the regulatory status of digital currencies like XRP.

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