Ripple’s CEO, Brad Garlinghouse, characterized the SEC’s action against the company as a “strike” on the industry as a whole.
The United States Securities and Exchange Commission’s (SEC) control via “enforcement” is not a “healthy method” to manage a sector, according to the CEO of Ripple, and may make the United States a less desirable home for crypto businesses.
Brad Garlinghouse, CEO of blockchain-based digital payment network Ripple, said in a March 3 Bloomberg interview that the U.S. faces a “serious danger” of losing out on being an attractive center for the next generation of blockchain and cryptocurrency innovation due to the SEC’s regulatory stance.
Garlinghouse said that the SEC’s action against Ripple is merely the SEC “going on the offensive” and “attacking” the sector as a whole, adding that if the SEC “is successful,” there would be “many additional instances.”
Given that the United States crypto regulatory process is “behind” that of “Australia, the United Kingdom, Japan, Singapore, and Switzerland,” he said that the crypto business has “already begun relocating outside” of the country.
He praised these nations for taking “the time and care” to establish “clear rules of the road,” adding that the United States’ approach to business regulation is not “healthy.”
In the late 1990s, when Garlinghouse “entered the tech business for the first time,” there were demands to prohibit the internet owing to “illicit activities.” Nevertheless, the government rejected the concept and chose to “build a framework.”
He stressed “the advantages” this early acceptance offered on a “geopolitical basis” to have the “Amazons and Googles” located in the U.S., implying that the same possibility exists now with developing a framework for cryptocurrency.
Garlinghouse believes the framework approach should start by identifying “clear consumer safeguards.” He argued Consumers are lagging because they lack the “same protection” that regulatory frameworks “can give.” Garlinghouse expects the SEC’s lawsuit against Ripple to be resolved this year.
John Deaton, the creator of the legal news source Crypto Law Lawyer, issued a call to action on March 5 to his 245,000 Twitter followers, urging that any organizations engaged in “active litigation” with the SEC should adopt “coordinated strategy” and declare “war.”
Kristin Smith, CEO of the Blockchain Association, told Bloomberg in an interview on February 22 that the U.S. crypto regulatory process is occurring “behind closed doors” and that greater business participation in an “open process” is crucial.
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