Ripple CEO Criticizes SEC for Stifling Crypto Innovation
Brad Garlinghouse, the CEO of Ripple, has openly criticized the U.S. Securities and Exchange Commission (SEC) for its aggressive enforcement approach towards the crypto industry. Speaking at the Ripple Swell conference in Dubai, Garlinghouse expressed concern over the SEC’s focus, questioning who the regulatory body is truly protecting in its journey.
According to Garlinghouse, the SEC’s actions have failed to protect investors and have only served to stifle the growth and innovation of the crypto industry. He believes that the industry needs a new regulatory framework that takes into account the nuances of digital assets.
The CEO’s criticism comes after a multi-year legal battle between Ripple and the SEC, in which the SEC accused the blockchain company of conducting securities fraud by selling XRP to retail investors. However, in a significant victory for Ripple, a judge ruled in July that XRP is not a security, marking a crucial development in the ongoing case.
Referencing a recent victory for Grayscale, a digital asset manager, Garlinghouse highlighted a federal judge’s criticism of the SEC for being “arbitrary and capricious” in the context of a Bitcoin ETF application. He believes that these legal developments may prompt the SEC to reassess its regulatory strategy, as its enforcement approach of only filing lawsuits has not been effective and has hindered innovation in the U.S.
Garlinghouse expressed hope that the regulatory stance towards the digital assets industry will shift to a more positive note following these legal developments. He emphasized the need for the government to take a proactive approach towards supervising the industry, starting with the introduction of new digital asset laws by Congress.
The CEO reiterated that XRP should not be considered a security and called for federal laws governing digital currencies to provide clarity and stability for the industry. As the legal battle continues, the next key step in the Ripple-SEC case is the remedies discovery process, with the SEC having 90 days from November 9 to conduct related discovery, according to a proposed schedule.
Garlinghouse’s criticisms reflect the growing tension between the crypto industry and regulatory authorities, as stakeholders seek to find a balance between fostering innovation and maintaining investor protection. As the industry continues to evolve, the conversation surrounding crypto regulation will undoubtedly remain a heated topic of debate and discussion.