The CEO of Ripple Criticizes the SEC
At the Ripple Swell conference in Dubai, Brad Garlinghouse expressed his disappointment with the U.S. Securities and Exchange Commission (SEC), claiming that the agency has lost sight of its mission to protect investors. He believes that the SEC’s actions have raised questions about who they are protecting in their pursuit.
In 2020, the SEC accused Ripple and its executives of engaging in a $1.3 billion securities fraud through the sale of XRP to retail investors. However, in July, a judge ruled that XRP is not a security, leading to the dismissal of securities law violation charges against Garlinghouse and Ripple executive Chris Larsen in October.
Now, the SEC has 90 days from Nov. 9 to conduct remedies-related discovery as part of the ongoing case against Ripple.
Garlinghouse’s Hope for Industry Regulation
Garlinghouse is optimistic about a positive future for the industry, emphasizing that it is not just about Ripple but about the entire crypto sector in the United States. He hopes that federal laws governing digital currencies will be introduced by Congress instead of relying on constant litigation for regulation.
He also referenced Grayscale’s victory in a bitcoin ETF case and criticized the SEC’s approach to regulation through enforcement, urging them to reconsider their tactics.
What is Ripple?
Ripple is a payments company specializing in cross-border money transfers using blockchain technology. The company’s RippleNet network enables financial institutions to send funds across borders while leveraging XRP, a cryptocurrency, for these transactions.
Ripple’s technology allows for currency conversion without pre-funded accounts on the receiving end, making cross-border transactions more efficient. However, XRP’s status as a security has been a point of contention between Ripple and the SEC.
Hot Take: The Need for Industry Regulation
Garlinghouse emphasizes the importance of industry-wide regulation and expresses hope for federal laws governing digital currencies to be introduced by Congress. He points out flaws in the SEC’s approach and calls for a reevaluation of their tactics towards crypto regulation.
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