According to Brad Garlinghouse, the CEO of Ripple, the SEC’s approach to regulation through “enforcement” is not a healthy way to regulate the industry. In a Bloomberg interview on March 3rd, Garlinghouse suggested that the SEC’s approach to regulation is putting the US at risk of not being a hub for the next evolution of blockchain and crypto innovation.
He noted that if the SEC is able to prevail in its case against Ripple, they’ll likely bring fourth a lot more cases against other projects.
Garlinghouse suggested that the crypto industry has already started moving outside the US as several other countries have more favourable regulations in place. A few examples given were Australia, UK, Japan, Singapore, and Switzerland. He commended these countries for creating clear rules of the road, unlike the approach the US has been taking.
When Garlinghouse entered the tech industry in the late 90’s, he recalls that there were proposals to ban the internet due to its association with illicit activity. However, the government opposed the idea and instead opted to create a framework.
Garlinghouse highlighted the benefits this early adoption brought on a geopolitical basis, as it lead to companies such as Amazon and Google being based in the US.
He suggested that the same opportunity is currently available by creating a framework for cryptocurrencies.
Garlinghouse believes that the frameworks being brought fourth should prioritize clear protections for consumers.
John Deaton, founder of “Crypto Law Lawyer”, has called on companies in active litigation with the SEC to collaborate and develop coordinated strategies. He even likened what has been happening to a “war”.
The point is the crypto industry must accept that the SEC waged a war 🆚 crypto when it attacked not only how a promoter sells a token but attacked the token itself – calling software code a security per se – no matter the seller or the circumstances surrounding the sale.
— John E Deaton (@JohnEDeaton1) March 5, 2023
We all know what’s going on here. If the SEC was genuinely out to “protect” investors, they never would have allowed the FTX debacle to occur. The ties between SEC chairman Gary Gensler and FTX founder Sam Bankman Freid have already been exposed.
It certainly seems as though the SEC is currently being used as an “attack dog” so-to-speak to negatively effect the crypto industry.
