Ripple CEO Criticizes SEC at Ripple Swell 2023 Conference
At the Ripple Swell 2023 conference in Dubai, Ripple CEO Brad Garlinghouse had a candid conversation with CNBC’s Dan Murphy. He expressed his strong opinions about the U.S. Securities and Exchange Commission (SEC) and cryptocurrency regulation in general. Garlinghouse questioned the SEC’s commitment to its mission of protecting investors, suggesting that the agency’s actions have deviated from this core objective. He pondered over whom the SEC is actually safeguarding through its regulatory endeavors.
The discussion touched upon Ripple’s legal challenges, particularly the SEC’s December 2020 accusation of Ripple conducting a $1.3 billion securities fraud through XRP sales. Garlinghouse highlighted key victories for Ripple, including a July 2023 ruling that XRP is not inherently a security and the SEC’s subsequent withdrawal of securities law violation charges against Ripple executives.
Ripple CEO’s Optimism About Industry’s Future
The Ripple CEO expressed optimism about the industry’s future, seeing these legal developments as beneficial not just for Ripple but for the entire crypto sector. He hopes for a shift from litigation-driven regulation to more concrete federal laws governing digital currencies.
Garlinghouse criticized the SEC’s repetitive approach to regulation through enforcement, implying that it’s an ineffective and unproductive strategy. He referenced Grayscale’s recent victory regarding a spot Bitcoin ETF as another example of the SEC’s flawed approach.
Hot Take: The Need for Change in Cryptocurrency Regulation
Brad Garlinghouse’s criticisms of the SEC reflect broader concerns within the crypto community about regulatory overreach and enforcement strategies. The need for clear, consistent federal laws governing digital currencies is evident, and these criticisms highlight that current approaches may not be effective or productive in fostering a healthy crypto industry.
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