A recent meeting between CFTC Commissioner Caroline D. Pham and Ripple CEO Brad Garlinghouse sparked much speculation and conjecture in the context of an ongoing legal dispute between the cryptocurrency startup and another regulatory agency, the SEC.
In July of this year, Commissioner Pham revealed her opinion about the SEC by stating that it is undesirable to regulate through enforcement, giving the Wahi case as an example. The commissioner invoked the values of openness and transparency, including the public and regulation expertswhich include the public and experts in regulation, while describing the significance of the process due to its potential ramifications for the whole crypto sector.
Read my statement on #SEC v. Wahi, regulation by enforcement & #CFTC authority #crypto #digitalassets #DAO pic.twitter.com/xbHvyshx8l
— Caroline D. Pham (@CarolineDPham) July 21, 2022
Reading between the lines of Pham’s comments, one may see her frustration with the SEC’s unilateral measures without any attempt to collaborate with other authorities. In the same July statement, the official identifies the protection of “end customers,” i.e., investors, as the primary concern for all authorities.
On the opposing side, similar arguments have been presented. For instance, pro-cryptocurrency activist and attorney John Deaton accused the SEC of hurting all XRP investors whose investments have suffered significant losses due to the regulator’s probe.
Recently, it became known that Gary Gensler, the chairman of the SEC, favours the bill that would place Ethereum and Bitcoin under the jurisdiction of the CFTC and other cryptocurrencies under the authority of the SEC. However, based on the most recent information, the resolution to this issue is not final.