The CEO of Ripple, Brad Garlinghouse, criticised the Securities and Exchange Commission's (SEC) enforcement-based strategy to regulating the cryptocurrency market.
According to Brad Garlinghouse, CEO of Ripple (XRP), the U.S. falls behind numerous nations with pro-crypto policies because of its staunch opposition to the sector. In a recent interview with Bloomberg, Garlinghouse lamented how US crypto regulation stifled the industry's advancements.
“The sad reality is that the US is already behind… behind Australia, the UK, Japan, Singapore, Switzerland, and other countries that have taken the time and thoughtfulness to create clear rules.”
His viewpoint aligns with those of other crypto stakeholders who have said that the U.S. strategy is bad for the sector.
The CEO pointed out that US officials are approaching cryptocurrencies differently than they did with the internet a few decades ago. At the time, the United States took the lead in developing the internet's regulatory framework, fostering an atmosphere that attracted investors and entrepreneurs and considerably boosted the nation's economy.
“Crypto moving offshore is not good for American innovation.”
Nonetheless, the nation's stance on cryptocurrencies is driving a number of entrepreneurs elsewhere. He continued that consumers lose since offshore regulatory standards cannot ensure the same level of robust consumer protection that the United States can.
He believed that a strong regulatory framework should begin with a clear grasp of consumer protection and that not all digital assets would be considered securities.
The Ripple CEO addressed numerous recent legislative changes that different nations have implemented on February 9. These changes, he says, are "energising" and "desperately missing in the U.S."
While this happened, Garlinghouse questioned the Securities and Exchange Commission's (SEC) enforcement-based strategy for regulating the cryptocurrency market. He asserts that the SEC behaves like a guy who uses a hammer and perceives everything as a nail.
According to Garlinghouse, the legal dispute between the financial watchdog and the cryptocurrency payment provider will be crucial to the nation's industry regulation. The action, he continued, demonstrates the SEC's aggressive stance towards the cryptocurrency sector.
The financial agency has taken a number of enforcement measures against cryptocurrency businesses that it claims violated federal securities law after the SEC launched its complaint against Ripple in 2022.
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