The CEO of Ripple Labs has warned of the harm to the crypto industry if the US Securities and Exchange Commission (SEC) succeeds in its case against Ripple over xrp. He warned that the SEC’s enforcement-oriented approach to regulating crypto “is not a healthy way to regulate an industry.”
Ripple CEO in lawsuit against SEC, US crypto regulator
Ripple CEO Brad Garlinghouse has warned of damaging consequences for the crypto industry if the US Securities and Exchange Commission (SEC) wins its case against him and his company over the sale of XRP in an interview with Bloomberg on Thursday.
“The SEC filing the case against Ripple was not really just a case about Ripple or so XRP “It’s really about industry,” Garlinghouse began. Claiming that the SEC is “attacking and attacking” the entire crypto industry, Ripple’s CEO emphasized:
This will be key for the entire industry.
He further warned that “if the SEC succeeds in prevailing” in its case XRP, more measures will be taken against crypto firms. The Securities and Exchange Commission recently took action against Kraken over the cryptocurrency exchange staking program and Paxos over the issuance of the Binance USD (BUSD) stablecoin. And SEC Chairman Gary Gensler believes so all crypto tokens other than bitcoin (BTC) are securities.
Citing the SEC’s enforcement-focused approach to regulating the crypto industry, Garlinghouse opined:
The macro headline for me is that this is not a healthy way to regulate an industry.
Ripple’s CEO went on to explain that the SEC’s focus on enforcement differs from other nations’ regulatory approaches to cryptocurrencies.
“We see in other countries where they are doing the job right. They codify. They create a framework that allows the industry to grow while protecting consumers,” Garlinghouse detailed, adding:
I think that’s really the thing that the US is behind.
Noting that many crypto businesses are already moving offshore, Garlinghouse emphasized, “The sad reality is that the US is really already lagging behind… It’s not lagging behind countries we haven’t necessarily heard of. This is behind Australia and behind the UK, Japan, Singapore, Switzerland. There are many countries that have taken the time and attention to create clear rules of the road.”
Garlinghouse explained that when he first got involved in the tech industry in the late 1990s, “some people were saying the internet should be banned.” He continued: “They were saying how the internet was being used for illegal purposes, but the US government said, ‘no, no, no, we’re going to create a framework.’ And it allowed entrepreneurs, it allowed investors to come in and see the benefits for the United States on a geopolitical basis.
Noting that the US risks missing out on “the next evolution of technology around blockchain and crypto,” Ripple’s boss warned:
Consumers suffer… because you don’t have the same protections that the US regulatory framework can provide.
Ripple’s CEO expressed earlier optimism regarding XRP court trial. The securities regulator sued him and his company in December 2020, claiming that the sale of XRP was an unregistered securities offering. Garlinghouse supports this XRP not a security, with an outcome of the case expected this year, potentially within the first six months.
Do you agree with Ripple CEO Brad Garlinghouse on the SEC and US crypto regulation? Let us know in the comments section below.
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