Ripple CEO warns of harm to crypto industry if SEC wins lawsuit over XRP – regulation
The CEO of Ripple Labs has warned of the damage to the crypto industry if the US Securities and Exchange Commission (SEC) wins its lawsuit 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’s CEO on SEC Lawsuit, US Crypto Regulation
Ripple CEO Brad Garlinghouse 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 bringing the case against Ripple wasn’t really just a case about Ripple or about XRP – it’s really about the industry,” Garlinghouse began. Claiming that the SEC is “attacking and attacking” the entire crypto industry, the Ripple CEO emphasizes:
This will be crucial for the entire industry.
He further warned that “if the SEC can prevail in its lawsuit over XRP,” further enforcement actions will be taken against crypto firms. The Securities and Exchange Commission recently took action against Kraken for the cryptocurrency exchange’s staking program and against Paxos for issuing the stablecoin Binance USD (BUSD) seized. Additionally, SEC Chairman Gary Gensler believes that all crypto tokens except Bitcoin (BTC) securities are.
Citing the SEC’s enforcement-oriented 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 further explained that the SEC’s focus is on enforcing other nations’ regulatory approaches to cryptocurrencies differs.
“We see in other countries where they are doing the job right. they codify. They create a framework that allows an industry to thrive while protecting consumers,” Garlinghouse explained, adding:
I think that’s really what the US is lagging behind.
Noting that many crypto companies are already moving abroad, Garlinghouse emphasized, “The sad reality is that the US is really already lagging behind… This isn’t behind countries that we haven’t necessarily heard of. This is behind Australia and behind Great Britain, Japan, Singapore and Switzerland. There are many countries that have taken the time and care to create these clear traffic rules.”
Garlinghouse explained that when he first entered the tech industry in the late 1990s, “some said the internet should be banned.” He continued, “They said the Internet is 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 to the United States on a geopolitical basis.”
Considering that the US is at risk of the “next development of technology around Blockchain and crypto” Ripple boss warned:
Consumers are suffering…because they don’t have the same protections that US regulatory frameworks can provide.
The Ripple CEO previously expressed optimism about the XRP lawsuit. The securities regulator sued him and his company in December 2020, alleging the sale of XRP was an unregistered securities offering. Garlinghouse has claimed that XRP is not a security and expects an outcome of 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 comment section below.
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Source: Crypto News Deutsch
