According to the CEO of Ripple, the United States Securities and Exchange Commission’s (SEC) regulation through “enforcement” is not a healthy method to regulate an industry and may make the US a less desirable location for crypto firms.
Ripple CEO Brad Garlinghouse stated that the US faces a severe risk of missing out on becoming an attractive centre for the next evolution of blockchain and crypto innovation due to the SEC’s regulatory approach.
The SEC’s case against Ripple is just the SEC attacking the industry on the offensive. If the SEC is successful, there will be many more cases.
Since the US crypto regulation process is behind that of Australia, the UK, Japan, Singapore, and Switzerland, the CEO suggested that the crypto industry has already started moving out 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 industry regulation could be healthier.
In the late 1990s, when Garlinghouse entered the tech industry for the first time, there were proposals to ban the internet due to illicit activity. However, the government rejected the idea and decided to create a framework.
He emphasised the benefits this early adoption brought on a geopolitical basis by having the Amazons and Googles based in the US, implying that the same opportunity exists now with developing a framework for cryptocurrency.
Garlinghouse believes the framework procedure should start by delineating explicit consumer protections. He added that they must catch up because they need the same protection that regulatory frameworks can provide.
Garlinghouse believes that the SEC’s case against Ripple should be resolved this year.
The owner of the legal news outlet Crypto Law Lawyer, John Deaton, sent a call to action to his 245,000 Twitter followers on March 5. He said that all companies in court with the SEC should work together to make plans and declare 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
Kristin Smith, the CEO of the Blockchain Association, said that regulating crypto in the US is happening behind closed doors and that it is essential for more people in the industry to take part in a process that is open to everyone.
