Ripple Labs CEO has warned of harm to the crypto industry if the US Securities and Exchange Commission (SEC) can prevail in its lawsuit against Ripple over xrp. He warned that the SEC’s enforcement-focused approach to regulating cryptocurrencies “is not a healthy way to regulate an industry.”
Ripple CEO on SEC Lawsuit, US Crypto Regulation
Ripple CEO Brad Garlinghouse has warned of damaging consequences for the crypto industry if the US Securities and Exchange Commission (SEC) wins its lawsuit against him and his company over the sale of XRP in an interview with Bloomberg on Thursday.
“The SEC that brought the case against Ripple was not really just a case about Ripple or about XRP — It really is about the industry,” Garlinghouse began. Stating that the SEC is “playing offense and attacking” the entire crypto industry, the Ripple CEO emphasized:
This is going to be critical for the entire industry.
It further warned that “if the SEC can prevail” in its lawsuit over XRP, more law enforcement will take place against crypto companies. The securities watchdog recently took action against Kraken for the cryptocurrency exchange’s staking program and Paxos for its issuance of the Binance USD (BUSD) stablecoin. Additionally, SEC Chairman Gary Gensler believes that all non-bitcoin crypto tokens (BTC) are values.
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.
The Ripple executive went on to explain that the SEC’s approach to enforcement differs from other nations’ regulatory approaches to cryptocurrencies.
“We are seeing in other countries where they are doing the job well. They are coding. They are creating a framework that allows an industry to grow while protecting consumers,” Garlinghouse detailed, adding:
I think that’s really what’s being left behind in America.
Noting that many cryptocurrency companies are already moving abroad, Garlinghouse emphasized: “The sad reality is that the US really is already behind… This is 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 consideration to create clear rules of the road.”
Garlinghouse explained that when he first got involved in the technology industry in the late 1990s, “some were saying the internet should be banned.” He continued: “They were saying how the internet is being used for illicit purposes, but the US government said, ‘no, no, no, we’re going to create a framework.’ And that allowed entrepreneurs, which allowed investors to come in and look at the benefits to the United States on a geopolitical basis.”
Noting that the US risks missing out on the “next evolution of technology around blockchain and cryptocurrency,” the Ripple chief warned:
Consumers are suffering… because they don’t have the same protections that the US regulatory framework can provide.
The Ripple CEO previously expressed optimism regarding the XRP lawsuit. The securities regulator sued him and his company in December 2020 alleging that the sale of XRP it was an unregistered securities offering. Garlinghouse has argued that XRP not a value, anticipating an outcome for the case this year, possibly 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.
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