- Brad Garlinghouse believes the SEC’s case against Ripple is not just about XRP but rather an attack on the entire crypto industry.
- Garlinghouse claims that numerous crypto and fintech firms have left the United States due to the SEC’s unclear regulations.
- In response to many leading crypto firms not registering with the SEC, Chairperson Gary Gensler said: “the law is the law.”
As the U.S. government’s crackdown on crypto continues, industry executives have increasingly opposed the regulations and called for a more accepting stance towards digital assets. Ripple CEO, Brad Garlinghouse, one of the more consistently vocal executives, has recently spoken out against the crackdown.
Ripple CEO Goes on the Offensive
In an interview with Bloomberg on March 2, Garlinghouse expressed his concern that the U.S. government’s anti-crypto stance was driving crypto and fintech innovation away from American shores – something Ripple itself has contemplated pending the result of its case with the SEC.
Garlinghouse asserted that the case is about more than just XRP and emphasized his hope that the crypto industry would soon receive closure.
“It’s been almost two and a half years since that litigation began. We’ve tried to move forward as quickly as we possibly could.” He disclosed that the litigation was fully briefed in front of federal court before adding: “We do expect a decision certainly in 2023.”
The U.S. Risks Falling Behind
Garlinghouse emphasized the importance of proper regulatory foresight for the blockchain and crypto industry, drawing a comparison to the early days of the internet.
“We are at a severe risk of not having that happen at this next evolution of technology around blockchain and crypto. It has already started moving outside the United States.”
The executive highlighted that the U.S. had initially considered banning the internet before establishing a regulatory framework. Garlinghouse cautioned that without a similar approach, the U.S. is at risk of losing its position as a leader in the industry.
“This is not a healthy way to regulate an industry.”
Unlike the U.S., other countries, such as Australia, the U.K, Japan, Singapore, and Switzerland, have taken the time and understanding to create clear rules and regulations for the crypto industry. Garlinghouse highlights this approach as the key aspect the U.S. lacks.
SEC Chair Gary Gensler: “the Law Is the Law.”
By contrast, SEC Chair Gary Gensler reiterated to Bloomberg on March 2 that the agency is committed to investor protection, stating that “there is nothing incompatible with crypto and our securities laws.” He emphasized that these laws were implemented to safeguard the investing public against fraud, schemes, and manipulation.
While many leading crypto firms have yet to register with the agency, Gensler stressed that “the law is the law.” He has repeatedly asserted that should crypto assets be officially classified as securities, companies must adhere to the same regulations as banks and those offering publicly listed stocks and shares.
On the Flipside
- The SEC cites investor protection as the rationale for its crypto crackdown.
- Ripple CEO Brad Garlinghouse believes that the SEC’s case against Ripple is being used as a scapegoat for the whole industry, not just XRP.
Why You Should Care
Ripple CEO Brad Garlinghouse’s recent comments highlight the potential consequences of the SEC’s actions. SEC chair Gary Gensler’s recent statements suggest that the agency is ready to take a more aggressive stance on regulation.