all about cryptop referances
The CEO of Ripple Labs has warned of the damage to the crypto industry if the US Securities and Exchange Commission (SEC) is able to prevail in the lawsuit against Ripple over xrp. He warned that the SEC’s enforcement-centric approach to regulating crypto “is not a healthy way to regulate an industry.”
Ripple CEO Brad Garlinghouse warned of damaging consequences for the crypto industry if the US Securities and Exchange Commission (SEC) wins the lawsuit against him and his company over the sale of XRP in an interview with Bloomberg on Thursday.
“The SEC taking the case against Ripple wasn’t really just a case about Ripple or about XRP – It’s really about the industry,” Garlinghouse began. The Ripple CEO claimed that the SEC is “playing foul and attacking” the entire crypto industry:
This will be central to the entire industry.
He further warned that “if the SEC is able to prevail” in the lawsuit over XRP, more enforcement will be carried out against crypto firms. The securities watchdog recently took action against Kraken over the cryptocurrency exchange’s betting program, and Paxos over the issuance of stablecoin Binance USD (BUSD). Furthermore, SEC Chairman Gary Gensler believes that all crypto tokens other than bitcoin (BTC) are securities.
Referring to the SEC’s enforcement-centric 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 focus on enforcement is different from the regulatory approaches of other nations with regards to cryptocurrencies.
“We see in other countries where they do the job right. They codify. They create a framework that allows an industry to grow while protecting consumers,” Garlinghouse said, adding:
I think that’s really what the US is after.
Noting that many crypto businesses are already moving offshore, Garlinghouse emphasized: “The sad reality is that the US is really already behind… These are not behind countries that we haven’t necessarily heard of. This is behind Australia, and behind Great Britain, Japan, Singapore, Switzerland. There are many countries that have taken the time and thought to create clear driving rules.”
Garlinghouse explained that when he first became involved in the technology industry in the late 1990s, “someone said the internet should be banned.” He continued: “They said 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 that allowed entrepreneurs, which allowed investors to come in and look at the benefits for the United States on a geopolitical basis.”
Noting that the U.S. risks missing out on “the next evolution of technology around blockchain and crypto,” the Ripple CEO warned:
Consumers suffer … because you don’t have the same protections that US regulations 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 was an unregistered securities offering. Garlinghouse has argued that XRP is not a security, and anticipates an outcome of the case 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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