Ripple CEO: SEC’s methods are ‘not a healthy way to regulate an industry’
- Ripple CEO Brad Garlinghouse is expecting a decision in the lawsuit against SEC this year.
- Ripple General Counsel Stuart Alderoty has warned those in the crypto space to not trust the SEC.
Ripple [XRP] CEO Brad Garlinghouse has revealed a timeline for the verdict of the ongoing lawsuit with the U.S Securities and Exchange Commission (SEC). In a 3 March interview with Bloomberg TV, Garlinghouse stated that he expected a decision on the controversial lawsuit this year. The lawsuit has been going on since December 2020.
Decision will be pivotal for the industry
According to the Ripple CEO, the verdict in this case will be pivotal for the crypto industry, not only in terms of setting a legal precedent for which crypto assets qualify as a security, but also defining the jurisdiction of United States regulators like the SEC.
Brad Garlinghouse has maintained that XRP is not a security, and that it is used by his firm to address issues related to cross-border settlements. Garlinghouse believes that the wall street regulator’s intensified regulatory crackdown and the recent enforcement actions, is keeping the U.S from establishing a productive regulatory framework for crypto.
“This is not a healthy way to regulate an industry.”
Garlinghouse’s calls for regulatory clarity in the U.S resonated with the stance of Ripple’s General Counsel Stuart Alderoty. In a recent interview with Blockworks, Alderoty expressed his disappointment with the lack of regulatory clarity for crypto in the U.S.
“The first advice you give, the first piece of advice you give somebody who’s thinking about a project, is don’t launch it in the US because the rules are unclear. Go to a jurisdiction where the rules are clear, not light-touch, but clear.”
Many have accused the SEC of trying to exceed their jurisdiction in an attempt to regulate crypto firms. Industry leaders, lawmakers and members of the agency, including Commissioner Hester Pierce, previously accused SEC Chair Gary Gensler of attempting to establish the agency as the de facto regulator for crypto by regulating through enforcement.
Data from CoinMarketCap shows that at press time, XRP was trading at $0.36, down 2.6% over the past 24 hours. Meanwhile, XRP’s daily trading volume increased by 33.6%.