Ripple CEO Brad Garlinghouse Criticizes SEC’s “Onslaught” Against The Payment Company
In a recent update to investors, Ripple’s Chief Executive Officer Brad Garlinghouse labeled the United States Securities and Exchange Commission’s (SEC) lawsuit against Ripple as “unhealthy.” The SEC accused Ripple of unlawfully selling unregistered securities through its XRP tokens.
The case, filed in December 2020, has been the subject of much debate and speculation in crypto. Garlinghouse aired his grievances with the SEC in a statement sent to Ripple investors.
In his view, Garlinghouse wrote that the SEC’s lawsuit is “not healthy” and warned of the potential consequences of the suit. “The SEC’s lawsuit is an attack on the entire crypto industry and American innovation,” he wrote.
Garlinghouse Blasts SEC’s ‘Detrimental’ Approach To Crypto Industry
Garlinghouse further asserted that this case could be a vital influence on the entire cryptocurrency industry. During his recent interview with Bloomberg, he considered the SEC’s actions as a detrimental way to manage the sector.
Garlinghouse stated that the Securities Executive Commission’s enforcement approach towards the industry is not beneficial. He proposed that they should look for other ways to regulate it, considering the increased number of cases brought against players in the industry.
He noted, “the SEC’s case against Ripple was not just about Ripple or XRP, but the whole sector; this could be crucial for the industry. The big picture is that this is not a viable way to regulate the industry.”
The executive cautioned that the SEC’s current regulations might lead to the United States needing to catch up in taking advantage of blockchain technology. He noted that many important crypto actors neglect the country due to the lack of regulatory clarity.
Garlinghouse added, “the unfortunate truth is that the United States is already lagging behind other countries. It is trailing the United Kingdom, Australia, Singapore, Switzerland, and Japan in creating clear guidelines for blockchain and cryptocurrency. Without the establishment of such rules, the United States is at risk of being left behind in this next wave of technological advancement.”
SEC’s Handling of Lawsuit Against Ripple Sparks Controversy
The financial watchdog’s handling of its ongoing lawsuit against Ripple has received broad criticism, with legal professionals expressing concerns over their attempt to regulate the crypto sphere. Both sides are hopeful they will succeed in the summary judgment, which is expected to happen before this month’s end.
However, some experts have also floated the prospect of settling. Meanwhile, both sides are battling over the disclosure of papers that could give insight into how the regulator initially classified tokens connected to Ethereum (ETH) and Bitcoin (BTC).
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