The CEO of Ripple insists the Commission has not provided clarity on cryptocurrency regulation. Essentially, he claimed the SEC is using cryptocurrency company meetings to generate leads for enforcement action and has lost sight of its potential to protect investors. Amid the SEC’s lawsuit over XRP, Ripple CEO Brad Garlinghouse reiterated his concerns over the lack of clarity in crypto regulation provided by the securities watchdog.
He tweeted Saturday “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.”
His tweets followed his Fox Business Friday interview, where he discussed the lack of clarity in crypto regulation, as well as the XRP lawsuit and its implications. “I think there has been and continues to be a lack of clarity,” Garlinghouse reiterated, emphasizing, “If we want this industry to thrive here in the United States, there needs to be clarity.”
Also, he cited the Nasdaq-listed crypto exchange Coinbase, which abandoned its plan to launch a lending product after the SEC threatened legal action. According to Coinbase, the SEC provided no explanation for the decision. Discussing the XRP lawsuit, Garlinghouse said that “the SEC’s mission is to protect investors and help ensure orderly markets.”
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On the other hand, he argued that in the XRP case “More than 10,000 people who are holding XRP have filed a class-action lawsuit against the SEC. These are the exact people the SEC is supposed to be protecting.” He further said that the securities regulator had not provided clarity when it allowed XRP to be listed and traded very freely across the United States. Therefore, the market for XRP “expanded for eight years,” and then “the SEC acted, forcing the price down by 60% or 70%.”
In regards to crypto regulation, Garlinghouse is not alone in its concern. Pat Toomey, a U.S. senator, wrote to Gensler Friday asking for clear guidance on crypto regulation. SEC Commissioner Hester Peirce has also voiced her concerns over the lack of clarity regarding crypto regulation.
The SEC claimed that XRP is a security, unlike bitcoin or ether, and must be registered and regulated as such. Recently, Ripple’s legal team said that it has no plans to settle with the SEC. SEC Chairman Gensler will be convinced that “pursuing the case is picking winners and losers in the crypto business to the detriment of innovation.”