Ripple’s CEO Takes a Swing at the SEC: Who Are They Really Protecting?
Ripple CEO Slams SEC for Neglecting Investor Protection
Ripple CEO slams SEC for neglecting investor protection.
The recent Ripple Swell conference in Dubai had some fiery moments, none more so than when CEO Brad Garlinghouse unleashed his thoughts on the United States Securities and Exchange Commission (SEC) and its supposed mission to protect investors. In an interview with CNBC’s Dan Murphy, Garlinghouse didn’t hold back, claiming that the SEC has lost sight of its purpose and questioning who they are actually protecting in this crypto-rollercoaster journey.
“The SEC, in my opinion, has lost sight of their mission to protect investors. And the question is, who are they protecting in this journey?” Garlinghouse mused, leaving many in the digital asset community nodding in agreement while stroking their metaphorical beards.
But what exactly brought about Garlinghouse’s frustration? Well, it seems the SEC’s enforcement actions against the crypto industry have taken a rather litigious path instead of working hand-in-hand with Congress to create effective regulations for this emerging economic frontier. In a bid to assert its authority, the SEC slapped Ripple and two of its executives, including Garlinghouse himself, with a lawsuit accusing them of orchestrating a $1.3 billion securities fraud. Ouch.
The case centered around Ripple’s failure to register the continuous sale of its XRP tokens, which left retail investors in the US without crucial information about the digital asset and Ripple’s business activities. It was a messy legal battle that raged on for over two years, leaving many wondering if XRP would ever catch a break.
But wait, there’s a twist in this crypto tale. In July, US District Judge Analisa Torres in Manhattan dropped the bombshell that XRP is not a security, effectively crumbling the SEC’s case like a poorly built sandcastle. The SEC, left reeling from this unexpected defeat, tried to salvage the situation with an interlocutory appeal, only to have their hopes dashed when it was denied. To add insult to injury, the charges against Garlinghouse and Ripple’s Chris Larsen for securities law violations were dropped in October.
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This turn of events has left Garlinghouse positively ecstatic, not just for Ripple but for the entire industry. He sees the SEC’s checkmate as a positive step that could pave the way for the crypto industry to flourish in the United States. You can almost hear him cheerfully exclaim, “Game, set, and match!”
“I think it is a positive step for the industry, not just for Ripple, not just for Chris and Brad, but for the whole industry, that the SEC has been put in check in the United States. And I’m hopeful this will be a thawing of the permafrost in the United States for really seeing an amazing industry that has immense potential to thrive in the largest economy in the world,” Garlinghouse declared, his optimism beaming through the computer screen.
As if that weren’t enough, Garlinghouse couldn’t resist taking a swing at the SEC’s regulatory strategy, comparing it to other legal battles in the industry. He pointed to Grayscale’s recent victory in securing a Bitcoin exchange-traded fund, where a federal judge delivered a scathing blow to the SEC, accusing them of being “arbitrary and capricious.” Ouch again.
It’s no wonder Garlinghouse believes it’s time for the SEC to reevaluate its regulatory approach, ditching the lawsuit frenzy for a more sensible strategy. After all, judges tend to stay neutral and avoid drama, so when they start slapping the SEC’s hand, something’s gotta give.
This regulatory rollercoaster has forced Ripple to rethink its recruitment strategy, redirecting its focus to other jurisdictions that demonstrate a more crypto-friendly approach. In an interview at the Token2049 conference in Singapore, Garlinghouse revealed that Ripple plans to hire a whopping 80% of its workforce from countries that have mastered the art of crypto regulation. It’s a direct punch at the SEC’s heavy-handedness and a not-so-subtle reminder that Ripple won’t hesitate to pack their bags and find greener pastures.
“It’s super frustrating to see markets like we have here in Singapore… where the governments are partnering with the industry, and you’re seeing leadership providing clear rules and growth. And frankly, that’s why Ripple is hiring there,” Garlinghouse stated, a touch of exasperation and defiance in his voice.
So, what’s next for Ripple and the industry as a whole? With the SEC put in its place, Garlinghouse believes it’s time for the crypto industry to thrive like never before in the United States. It’s a chance for innovation to run wild and for the country to embrace its potential as a crypto powerhouse.
Dear digital asset investors, do you agree with Garlinghouse’s scathing critique of the SEC? Are you now even more bullish on Ripple and the future of the crypto industry in the United States? Let’s chat in the comments section below and get this lively conversation going!