Ripple CEO Brad Garlinghouse believes that the regulatory efforts of the US Securities and Exchange Commission (SEC) are contradictory with regard to the crypto industry.
Garlinghouse made the corresponding comments on Thursday during the Collision Conference in Toronto in conversation with the editor-in-chief of the influential tech magazine Wired. Of course, the Ripple CEO referred to the ongoing legal dispute between the blockchain service provider and the SEC, in which the federal authority accuses Ripple of having committed unlawful securities sales with the issuance of the company’s own cryptocurrency XRP. At the same time, however, the Securities and Exchange Commission waved through the IPO of the crypto exchange Coinbase in April 2021, although at that time it had XRP in the listing.
“The SEC argues in its lawsuit that ‘XRP is and has always been a security’, but nevertheless they have approved the Coinbase IPO, although Coinbase is not an authorized securities dealer,” as the Ripple CEO wonders. He adds: “The SEC is contradicting itself, as if the left hand does not know what the right hand is doing.“
Garlinghouse continues:
“Instead of the Securities and Exchange Commission working to establish clear rules and new regulations for the industry, it prefers to take the path of least resistance by pursuing regulation through law enforcement, which does not really make sense and rather hinders innovation in the United States.“
Also, the assessment of SEC chief Gary Gensler that the crypto industry is a kind of Wild West, the Ripple executive vehemently contradicts. Rather, market participants would also have to bear some personal responsibility and price risks: “Of course, the crypto market is a very volatile asset class, but in the end, all asset classes have a certain volatility. I don’t think it’s the job of a regulator to determine how investors and companies deal with this volatility.“
“I don’t think it’s the wild west at all.” Ripple CEO @bgarlinghouse thinks the SEC isn’t painting crypto in the right light. pic.twitter.com/iO30gVafTn
– Cointelegraph (@Cointelegraph) June 23, 2022
The process between the XRP publisher and the important authority is still ongoing. Observers expect that the final decision in the proceedings will set a precedent in the US, which could be groundbreaking for the entire crypto industry.
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