Ripple CEO Warns of Damage to Crypto Industry If SEC Wins XRP Case
CEO of Ripple Labs has expressed concern about the damage that may be done to the cryptocurrency market if the U.S. Securities and Exchange Commission (SEC) is successful in its legal action against Ripple.
Ripple CEO Brad Garlinghouse cautioned of detrimental effects to the crypto sector if the U.S. Securities and Exchange Commission (SEC) wins its case against him and his business over the selling of XRP in an interview with Bloomberg on Thursday.
The SEC's lawsuit against Ripple was truly about the industry as a whole, not just Ripple or XRP, according to Garlinghouse. Asserting that the SEC is "playing offence and assaulting" the whole crypto business, Ripple CEO emphasised:
"This is going to be pivotal for the whole industry."
He added a warning that future enforcement actions would be taken against cryptocurrency businesses "if the SEC is able to triumph" in its legal battle over XRP.
The securities regulator recently initiated action against Paxos and Kraken for issuing the stablecoin Binance USD and the cryptocurrency exchange's staking programme, respectively (BUSD). Also, according to SEC Chairman Gary Gensler, all cryptocurrency tokens other than bitcoin (BTC) are securities.
Garlinghouse stated the following in support of the SEC's enforcement-focused strategy to regulating the crypto industry:
"The macro headline for me is this is not a healthy way to regulate an industry."
The Ripple CEO continued by describing how the SEC's emphasis on enforcement is different from other countries' regulatory strategies with relation to cryptocurrencies.
“We’re seeing in other countries where they’re doing the work right. They’re codifying. They’re creating a framework that allows an industry to grow while protecting consumers,” Garlinghouse detailed, adding:
"I think that’s really what the U.S. is lagging."
The U.S. is already behind, Garlinghouse stressed, noting that many cryptocurrency enterprises have already relocated abroad. This is not a secret from nations that we may not have heard about.
This places it behind Switzerland, the United Kingdom, Japan, Australia, and the United States. Several nations have taken the time and care to establish these precise traffic regulations.
Also read: SEC Vs. Ripple lawsuit: All you need to know
Garlinghouse recalled that "some were suggesting the internet should be outlawed" when he entered the computer sector in the late 1990s. The US administration responded: "No, no, no, we are going to develop a framework."
They were saying how the internet is being exploited for illegal reasons. And it made it possible for businesspeople and investors to enter the market and assess the advantages for the United States from a geopolitical standpoint.
Noting that the United States risks losing out on the "next development of technologies surrounding blockchain and crypto," Ripple CEO warned:
"The consumers are suffering … because you lack the protections the U.S. regulatory framework can provide."
On the XRP lawsuit, the CEO of Ripple earlier voiced hope. In December 2020, the securities regulator filed a lawsuit against him and his business, claiming that the sale of XRP constituted an unregistered securities offering.
Garlinghouse has insisted that XRP is not a security and has predicted that the dispute would be resolved this year, maybe in the first half.
Because this is a significant lawsuit, the outcome will determine future crypto regulation.
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