The recent news report revealed that the CEO of Ripple Labs, Brad Garlinghouse, claimed that the United State Securities and Exchange Commission seems to be after power and politics rather than creating a well-grounded policy.
According to the report, Garlinghouse expressed his criticism of the SEC during a recent interview. According to him, the regulator is more concerned about gaining more power via playing politics in the crypto market rather than its primary duty of creating a clear and comprehensive crypto regulatory framework.
Furthermore, the CEO pointed out that the SEC knew there was confusion in the market regarding the rules guiding crypto activities in the US. And instead of clarifying the situation, the regulator further infuses confusion into the market as it helps it grow more power over the market.
In addition, he claimed that the recent court ruling, which declared XRP as a commodity, has somewhat rebuffed some of the confusion the agency implanted. He added that the rules concerning crypto conduct in the United States have moved a huge step towards achieving clarity as Ripple emerged winner of its lawsuit against the SEC.
Ripple Challenge The SEC, Which Was Bullying Smaller Firms
The CEO continued that the victory was not for Ripple alone but for the entire crypto space. In addition, Garlinghouse said the brave step Ripple took to withstand and fight against the SEC when the application first arose in 2021 was worth it. He added that due to Ripple’s decision, the SEC chairman’s agenda to outrightly classify cryptocurrencies as securities have been stopped dead in its tracks.
Additionally, Garlinghouse found it ironic that it was only the United States that thought XRP was a security, as no other country shared the same thoughts with it. However, he expressed his gladness that the lawsuit ruled in their favor and also helped to generate some ounce of clarity in the United States crypto industry.
Furthermore, the Ripple chief executive officer emphasized the importance of the victorious ruling of Ripple over the SEC. He said that would be the first time the SEC lost a case against a crypto firm. He added that the regulator had been enjoying countless victories over and over again, mainly because it had been targeting weaker and smaller crypto firms.
Garlinghouse believed the SEC is a financial bully that only preys on weaker players who lack a proper system to defend themselves. However, he highlighted that as Ripple is a crypto giant, it could afford the courage and fortitude to challenge the regulator.
In addition, he argued that the crypto industry, for a long time, had needed someone to summon the courage and fight off the menacing SEC agency, which has been using force to regulate the crypto market, for stalling the growth of the industry in the United States with its actions. He was glad that Ripple was up to the task.
Garlinghouse Differentiate The SEC From Other Country’s Regulators
According to the CEO, the SEC lacks its duties to provide regulatory clarity for the crypto industries, unlike other countries. Be said, many European nations and other countries are striving to set up a progressive crypto regulatory framework that would encourage crypto industry growth and, at the same time, protect the customers.
Garlinghouse continued that their actions towards achieving regulatory clarity would help investors and businesses navigate crypto investments with minimal risks. However, unlike the regulatory agency in other countries, the United States SEC is bent on suing crypto startups rather than providing clarity, he said.
Meanwhile, the SEC’s ex-chief of internet enforcement, John Stark, reportedly stated that it is time for the SEC to appeal the Ripple ruling, which he predicted might be overturned. Nonetheless, Garlinghouse believed it would take years for the SEC to pull off an appeal.
In addition, the CEO is confident that should the SEC file an appeal, Ripple would still emerge the winner because the regulator trespassed its authority while classifying all crypto assets as securities.