Top venture capitalist and entrepreneur Jason Calacanis has taken to Twitter to opine that XRP, the digital currency associated with blockchain company Ripple, is "obviously a security."
In his tweet, Calacanis criticized the blockchain company for failing to register the token as a security, arguing that it would have been a straightforward process that other industry players have adhered to.
Calacanis's tweet throws fuel on the fire of Ripple's ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).
The formidable regulatory agency has accused the San Francisco-headquartered blockchain company of conducting an unregistered securities offering through the sale of XRP.The core issue of the legal dispute revolves around whether XRP should be classified as a security or a digital currency.
The SEC has held firm to its stance that the controversial token is a security, but Ripple has vigorously defended its position that it is is a digital currency.
Ripple CEO Brad Garlinghouse recently revealed at the Dubai Fintech Summit that the company is bracing itself for an eye-popping $200 million in legal expenses.
The immense cost of the legal scuffle can be attributed to the extremely complex nature of the case and the involvement of high-profile law firms representing Ripple.