Bitcoin News and Finance Ripple CEO Says SEC Gives No Clear Framework for Crypto, Discusses XRP Lawsuit Skip to main content

Ripple CEO Says SEC Gives No Clear Framework for Crypto, Discusses XRP Lawsuit

Ripple CEO Says SEC Gives No Clear Framework for Crypto, Talks About XRP Lawsuit

As the lawsuit with the U.S. Securities and Exchange Commission (SEC) continues, Ripple CEO Brad Garlinghouse insists that the Commission has provided no clarity in crypto regulation. He said the SEC is using its meetings with crypto companies as lead generation for enforcement actions, and the agency has lost sight of its mission to protect investors.

Ripple’s CEO Claims SEC Uses Meetings With Crypto Companies as Lead Generation for Enforcement Actions

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.

The Ripple CEO’s tweets followed his interview with Fox Business Friday where he also talked about the lack of clarity in crypto regulation in addition to discussing the XRP lawsuit and its implication.

“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.” He insisted that the SEC chairman cannot continue to say “hey, there is clarity” but then called on “Congress to write new laws to make it clear.” Garlinghouse stressed that “Both those things can’t exist.”

He also referenced the Nasdaq-listed crypto exchange Coinbase which recently abandoned its plan to launch a lending product after the SEC threatened a lawsuit. The exchange said the Commission provided no explanation about its decision.

Discussing the XRP lawsuit, Garlinghouse said that the SEC’s “mission is to protect investors and help ensure orderly markets.” However, 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 added that without providing clarity, the securities watchdog “allowed XRP to be listed and traded very freely across the United States.” Consequently, “more and more people got involved” and XRP “traded for eight years, and then [the SEC] brought a suit driving the price down 60% or 70%.”

Garlinghouse opined: “If the goal is orderly markets and the goal is to protect investors, I think we lost sight of the big picture of what the SEC’s main mandate is.”

The Ripple executive was asked what Gary Gensler’s end game is with Ripple, XRP, and the entire crypto business. He replied:

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.

Garlinghouse is not the only one concerned about the lack of clarity in crypto regulation. U.S. Senator Pat Toomey wrote a letter 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.

Garlinghouse further noted that the SEC often said, “Hey, come talk to us.” However, “every time someone goes to talk to them from the crypto community, it feels like it’s lead generation to bring enforcement actions. That’s not a good way for us to help this industry thrive in the United States,” he opined.

The SEC claimed that XRP is a security, unlike bitcoin or ether, and must be registered and regulated as such. Garlinghouse described: “If you start treating XRP as a security, that means you are subject to a whole lot of regulations [and] costs associated with security settlement. The magic of XRP is how incredibly fast and how incredibly cost-efficient it is for cross-border payments, how Ripple deploys the technology.” The CEO warned:

If you start treating it as a security, the costs and speed change dramatically and really that is an example of where the SEC is in effect picking the winners and losers of this new industry.

Ripple’s legal team recently said that it had no plans to settle with the SEC and is confident that SEC Chairman Gensler will be convinced that “pursuing the case is picking winners and losers in the crypto business to the detriment of innovation.”

Do you agree with Ripple CEO Brad Garlinghouse? Let us know in the comments section below.

Comments

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Blogarama - Blog Directory