Ripple CEO Brad Garlinghouse Criticizes SEC’s Approach to Crypto
Ripple CEO Brad Garlinghouse expressed his dissatisfaction with the United States Securities and Exchange Commission (SEC) in a recent interview. During the World Economic Forum in Davos, Garlinghouse described the SEC as “very hostile” and criticized Chairman Gary Gensler’s regulatory methods.
Legal Battle with the SEC
In 2020, Ripple faced a $1.3 billion lawsuit from the SEC for allegedly selling unregistered securities through its digital asset, XRP. However, last July, a judge ruled that retail sales of XRP did not qualify as securities, which was seen as a positive development for the crypto industry.
Gensler’s Regulatory Approach
Garlinghouse accused Gensler of repeating unsuccessful strategies and expecting different outcomes. He expressed doubts about the effectiveness of the SEC’s approach to crypto regulation.
Avoiding an IPO in the U.S.
Garlinghouse stated that due to the SEC’s adversarial stance towards the crypto industry, Ripple has no plans for an initial public offering (IPO) in the United States. He questioned why they would subject themselves to a regulator openly hostile to their industry.
Hot Take: Ripple CEO Criticizes SEC’s Hostility towards Crypto
Ripple CEO Brad Garlinghouse criticized the United States Securities and Exchange Commission (SEC) for its adversarial approach to the crypto industry. He referred to Chairman Gary Gensler as a “political liability” and expressed doubts about the effectiveness of his regulatory methods. Despite winning a partial victory in court against the SEC last year, Garlinghouse revealed that Ripple has no intentions of pursuing an IPO in the U.S. due to the SEC’s hostility towards the industry. This ongoing conflict highlights the challenges faced by crypto companies operating within the U.S. regulatory framework.
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