Ripple CEO Brad Garlinghouse has taken to Twitter to share his views on the SEC’s regulation of cryptocurrency. In an interview with Fox Business Friday, Garlinghouse spoke about Ripple’s ongoing court case with the SEC and more broadly about the lack of clarity in crypto regulation.
“There has been and continues to be a lack of clarity”, Galinghouse noted in his interview with Fox Business Friday. He added “If we want this industry to thrive here in the United States, there needs to be clarity”. The CEO brought up the case of Ether not being penalised in the same way that XRP has been.
The SEC has been in an ongoing lawsuit with Ripple, in which the exact definition of Ripple's token - XRP, is being challenged. Most recently, Ripple was forced to halt the launch of a lending product following the SEC threatening a lawsuit. The SEC has been particularly harsh towards crypto lending products, with crypto exchange Coinbase also being forced to abandon a lending product after SEC pressure.
Following the interview, the Ripple CEO took to Twitter to further share his thoughts:
“American innovation is on the line because of the SEC’s refusal to provide a clear framework for crypto. Instead of working with the industry, the SEC is using their meetings with companies as lead generation for their enforcement actions. Once the dust settles, it’ll be clear that Ripple’s on the right side of the law, and the right side of history”
Despite the focus on the SEC and their regulation of crypto, other regulatory bodies and existing regulation of crypto is often forgotten about, as Garlinghouse brought up:
“I think we lose sight of the fact that crypto is regulated. It’s regulated by the CFTC, it’s regulated by other government agencies, whether it’s FinCEN, U.S. treasury. So, when I heard the SEC people come and say, ‘hey, this is the Wild Wild West, it’s not regulated,’ that’s not entirely true”
The chairman of the SEC Gary Gensler has been at the forefront of the SEC’s harsh regulatory approach of crypto, despite other SEC commissioners such as “crypto mom” Hester Pierce advocating for a crypto-friendly approach to regulation.
U.S. Senator Pat Toomey recently penned a letter to Gensler asking for greater regulatory clarity when it comes to crypto. The Pennsylvania Senator criticised the SEC for their enforcement strategy of the crypto industry:
“For investors to benefit from a fair and competitive marketplace, regulators must proactively provide rules of the road to industry. Unfortunately, the Securities and Exchange Commission (SEC) has instead adopted a strategy of regulation-by-enforcement in this area.”
Ripple’s ongoing legal battle with the SEC doesn’t look like it will end anytime soon, with Ripple stating that they have no plans to settle.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.