In a recent interview with Bloomberg, Brad Garlinghouse, the CEO of Ripple, has accused the U.S. Securities and Exchange Commission (SEC) of prioritizing “politics and power” rather than the creation of “sound policy.” Garlinghouse boldly stated that the SEC intentionally created confusion in the cryptocurrency market and used it as a means to assert its power. He criticizes the regulator for not providing clear rules for the industry, which has hindered innovation and investment.
Garlinghouse believes that the recent ruling in the Ripple case has dispelled some of the confusion and provided much-needed clarity to the entire U.S. market. This ruling, according to him, is not only a victory for Ripple but for the entire crypto industry. It is significant because it is the first time the SEC has lost a crypto case. Garlinghouse contends that the SEC has mainly targeted smaller companies that lacked the resources to mount a defense. Ripple’s ability to stand up to the regulator sets an important precedent for other companies in the industry.
SEC: A Bully Using Regulation Through Enforcement
Characterizing the SEC as a bully, Garlinghouse criticizes the regulator’s use of regulation through enforcement as its primary tool to build a market. He argues that the SEC should focus on doing the necessary work, as other countries, particularly in Europe, have done, to establish clear regulations for the crypto industry. Regulatory clarity is essential for attracting and protecting investors and entrepreneurs. However, Garlinghouse claims that the SEC is more interested in bringing lawsuits rather than putting in the hard work to develop comprehensive crypto rules.
Despite some experts suggesting that the Ripple ruling is “ripe for appeal” and likely to be overturned, Garlinghouse remains optimistic. He believes that even if the SEC appeals the ruling in the Second Circuit court, Ripple will ultimately emerge victorious. His optimism stems from the belief that the SEC overstepped its authority by claiming that most cryptocurrencies are securities. Garlinghouse firmly asserts that Ripple is not a security and argues that the SEC’s stance is misguided.
Brad Garlinghouse, the CEO of Ripple, has criticized the SEC for acting in favor of politics and power instead of sound policy. He accuses the regulator of intentionally sowing confusion in the crypto market and targeting smaller companies. The recent ruling in the Ripple case, which went in favor of the company, is seen as a victory for both Ripple and the wider crypto industry. Garlinghouse calls on the SEC to put in the necessary work to establish clear regulations, similar to what other countries have done. Despite potential appeals, he remains optimistic that Ripple will ultimately prevail, standing firm against the SEC and its questionable actions.