Brad Garlinghouse, the managing director of Ripple Labs, has claimed that the United States Securities and Exchange Commission, or SEC, has imposed inconsistent regulations on crypto businesses in the country.
Speaking to Wired’s editor at the Collision conference in Toronto on Thursday, Garlinghouse pointed to Ripple’s ongoing legal battle with the SEC, in which the federal regulator has alleged that the company’s executives conducted a ” unregistered and ongoing digital asset securities” with XRP Token Sales. Garlinghouse referenced the SEC’s approval of Coinbase’s April 2021 public offering despite the crypto exchange listing XRP at the time.
“The SEC now seems to be taking a stand when they sued us that ‘XRP is a security and always has been,’ but they approved Coinbase going public even though Coinbase is not a broker. recorded,” the CEO of Ripple said. “There are contradictions here in that the SEC has almost no knowledge, within its organization, of knowing the left hand, the right hand.” Garlinghouse added:
“The SEC, instead of working hard to come up with a new set of clear rules, a new set of clear regulations […] they’re deciding instead that we’re going to regulate through law enforcement, which isn’t effective and I think has really stifled innovation in the United States.
Garlinghouse, Ripple co-founder Chris Larsen and Chief Technology Officer David Schwartz all filed complaints against US regulators before and after the SEC filed its lawsuit against the company in December 2020. Larsen suggested in October 2020 that Ripple might consider leaving the United States. behind given the “regulation by enforcement” policy of many authorities – the company is currently headquartered in San Francisco, but also has offices in Dubai and Wyoming.
Related: Ripple Lawyer Slams SEC for Trying to Bulldoze and Bankrupt Crypto
” I do not think so [crypto is] the Wild West at all,” Garlinghouse said, in response to SEC Chairman Gary Gensler’s characterization of the space. “I think crypto is definitely a volatile asset class […] All asset classes have some volatility – I don’t think it’s a regulator’s job to determine how that volatility should be accessible to consumers, to businesses.
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The legal case between Ripple and SEC is still ongoing, with many expecting the results to set a precedent for the regulatory treatment of cryptocurrencies in the United States.