Ripple CEO Criticizes US SEC for 'Ambivalence' in Crypto Regulation

Ripple Labs CEO Brad Garlinghouse has claimed that the U.S. Securities and Exchange Commission (SEC) is inconsistently regulating crypto firms in the United States.

Speaking to Wired editor-in-chief at the Collision conference in Toronto on Thursday, Garlinghouse said Ripple's current legal battle with the SEC, in which the federal regulator accuses Ripple executives of "unregistered, ongoing fraud" by selling XRP tokens. Digital Asset Securities Issuance". Garlinghouse referred to the SEC’s approval of Coinbase’s public offering in April 2021, even though the cryptocurrency exchange listed XRP at the time.

“The SEC sued us saying ‘XRP has always been a security,’ but they approved Coinbase to list, even though Coinbase is not a registered broker-dealer,” said the Ripple CEO. Knowing left hand and right hand.” Garlinghouse added:

“Instead of trying to define a new set of clear rules, a new set of clear rules [...] they decided instead that we’re going to regulate through enforcement, which is not efficient, and I think it’s actually stifling innovation in America. "

Garlinghouse, Ripple co-founder Chris Larsen and CTO David Schwartz before and after the U.S. Securities and Exchange Commission filed a lawsuit against Ripple in December 2020 Complaints were filed with U.S. regulators. In October 2020, Larsen said that Ripple might consider leaving the U.S. — the company is currently headquartered in San Francisco but also has offices in Dubai and Wyoming — given the “law enforcement oversight” policy of many authorities.

"I don't think (cryptocurrency) is the Wild West at all," Garlinghouse said in response to SEC Chairman Gary Gensler's characterization of the field. is a volatile asset class...all asset classes have some volatility, and I don't think it's the regulator's responsibility to decide how that volatility should be perceived by consumers and businesses." Tribunal between Ripple and SEC The case is still ongoing, and many expect the outcome to set a precedent for the regulatory treatment of cryptocurrencies in the United States.