Ripple Labs CEO warns of harm to the crypto industry if the US Securities and Exchange Commission (SEC) is able to win its case against Ripple over xrp. He warns that the SEC’s enforcement-centric approach to regulating crypto is “not a sound way to regulate the industry.”
Ripple CEO on SEC complaint, US crypto regulation
Ripple CEO Brad Garlinghouse warned of harmful consequences for the crypto industry if the U.S. Securities and Exchange Commission (SEC) wins a lawsuit against him and his company over the sale ofXRPin a Bloomberg interview on Thursday
“The SEC’s lawsuit against Ripple was actually not just a case about Ripple, it was not just a case aboutXRP – it’s really about the industry,” Garlinghouse began, arguing that the SEC is “attacking” the entire crypto industry and that Ripple’s CEO emphasized that.
This is going to be extremely important for the entire industry.
He also warned that “if the SEC can prevail” in its lawsuit againstXRP, there will be more enforcement against crypto companies. The securities watchdog recently took action against Kraken for its cryptocurrency exchange staking program and against Paxos for its issuance of the stablecoin Binance USD (BUSD). In addition, SEC Chairman Gary Gensler believes that all crypto tokens are securities, except for Bitcoin (BTC
Citing the SEC’s enforcement-centric approach to regulating the crypto industry, Garlinghouse opined.
The macro headline for me is that this is not a sound way to regulate the industry.
The Ripple executive went on to explain that the SEC’s focus on enforcement differs from other countries’ regulatory approaches to cryptocurrencies.
“We see them doing their job correctly in other countries. They are codifying. They are creating a framework that allows the industry to grow while protecting consumers,” Garlinghouse elaborated, adding.
That’s really where the U.S. lags behind.
Noting that many crypto businesses have already moved overseas, Garlinghouse emphasized. The sad reality is that the U.S. is already behind…” This is not necessarily a lag for countries we have never heard of. We are behind Australia, the UK, Japan, Singapore, and Switzerland. There are many countries that have taken the time and deliberation to create clear rules.
Garlinghouse explained that when he started working in the tech industry in the late 1990s, “some people said we should ban the Internet.” He continued. But the U.S. government said, ‘No, no, we will create a framework.’ And that allowed entrepreneurs and investors to come in and look at the benefits to the U.S. from a geopolitical perspective.”
The U.S. risks missing out on “the next evolution of technology around blockchain and crypto,” warned the Ripple boss.
Consumers are suffering …… because they do not have the protections that the U.S. regulatory framework can provide.
Ripple’s CEO had previously expressed optimism regardingXRPlitigation. Securities regulators sued him and his company in December 2020, alleging the sale ofXRPwas an unregistered securities offering; Garlinghouse maintainsXRPis not a security, anticipating the outcome of the case potentially within the first six months this year There are no.
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