Ripple CEO Brad Garlinghouse is in the news today after he tweeted on the state of the crypto industry in the United States. According to the executive, the industry needs to restore trust through utility and transparency.
Garlinghouse argues that the industry needs to work together to move forward and overcome the aforementioned trust deficit. To make his point, he cited FTX and Terra as examples of companies that broke the trust in cryptocurrencies
That being said, the CEO did argue that the crypto industry faces significant headwinds, such as the Securities and Exchange Commission (SEC) waging war on cryptocurrencies. In fact, Garlinghouse criticized SEC Chairman Gary Gensler’s call for crypto firms to register, arguing that no infrastructure has been built for a “registered token” for trading and that there is a lack of clarity on what these tokens are.
Ripple’s CEO also called on US authorities to properly regulate the industry, noting that many other G20 countries are already developing frameworks and providing guidance. As an example, he cited the EU’s Markets in Crypto Assets (MiCA) regulations.
The SEC against Ripple is still ongoing
Garlinghouse also took the opportunity to take a dig at the SEC. Citing Judge Analisa Torres’ latest ruling in the SEC case against Ripple, the firm’s CEO wrote,
“It’s only Tuesday, but it’s shaping up to be a not-so-great week for the SEC (this ruling, Voyager, Grayscale).”
Additionally, according to Ripple’s general counsel Stuart Alderotti, the blockchain payments company’s credibility grows with each ruling in its legal battle against the SEC. For now, it appears that the SEC’s arguments that XRP is a security have suffered significant setbacks.
Although the SEC has stepped up its crypto enforcement actions in what appears to be an attempt to establish a grip on the nascent market, recent trends show that the voices of industry players are being heard in court. The SEC’s investigation into whether XRP is a security has been ongoing for more than two years.
The SEC has recently stepped up its campaign against unregistered securities, claiming they put investors in dangerous situations due to a lack of transparency.
The regulatory body last month punished Kraken with a $30 million settlement that forces it to end its crypto staking program. The SEC has too warned Paxos on plans to sue them for issuing Binance USD (BUSD). According to the SEC, BUSD is an unregistered security.
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