Ripple CEO criticizes SEC’s regulation approach
Ripple CEO Brad Garlinghouse has criticized the SEC’s regulation by enforcement approach and questioned the agency’s crypto jurisdiction. He argues that the SEC has not provided clear guidance to the industry, leading to uncertainty and confusion. Garlinghouse believes that relying on enforcement actions instead of legislative clarity only adds to the confusion and fails to protect retail investors.
SEC chair requests more funding for oversight
Meanwhile, SEC Chair Gary Gensler has asked Congress for more funding to increase the agency’s oversight of the unregulated cryptocurrency market. The commission needs additional resources to combat fraud and market manipulation, update guidelines for the crypto industry, and supervise the registration process of crypto exchanges and platforms. Gensler’s funding request reflects the growing criticism of the SEC’s approach to crypto regulation.
Crypto businesses eye global expansion
Ripple is expanding beyond crypto and plans to acquire companies in crypto-friendly jurisdictions as part of its strategic growth outside the United States. Recent partnerships with Lemonway and Xbaht enable Ripple to facilitate cross-border payments in France and Sweden. Ripple has also received provisional regulatory approval in Singapore, allowing the company to operate and expand its digital asset services in the country. Other US-based crypto businesses are also securing regulatory licenses abroad.
SEC plans to appeal Ripple’s legal case
The SEC plans to appeal Judge Analisa Torres’ ruling that dismissed some of the securities claims made by the agency against Ripple. The SEC had accused Ripple of conducting an unregistered securities offering by selling XRP. The SEC’s enforcement-focused approach could prolong the case and contribute to continued uncertainty within the industry.
Consequences of Ripple case and appeal
The Ripple case and the SEC’s appeal have the potential to shape future crypto regulations and provide greater clarity for industry actors. Garlinghouse’s criticism highlights the need for clear legislation in the crypto industry, and Gensler’s funding request reflects the desire for increased oversight. As the case progresses and the appeal is considered, its consequences will be closely observed.
Hot Take
The criticism and requests for more funding from both Ripple and the SEC highlight the ongoing regulatory challenges in the crypto industry. Clear legislation and comprehensive guidelines are necessary to provide certainty and protection for investors. The outcome of the Ripple case and the SEC’s appeal could shape the future of crypto regulations, determining whether they will be more focused on enforcement or legislative clarity.
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