Brad Garlinghouse, the CEO of Ripple, has accused the U.S. Securities and Exchange Commission (SEC) of prioritizing “politics and power” over the creation of “sound policy.” In a recent interview with Bloomberg, Garlinghouse reiterated his criticisms against the regulatory watchdog, claiming that instead of providing clear rules for the cryptocurrency industry, the SEC has been sowing confusion in the market.
Garlinghouse boldly stated that the SEC knew there was confusion and intentionally took actions to increase it. He believes that the SEC uses this confusion as a means to assert its power. However, he believes that the recent ruling in the Ripple case has dispelled some of the confusion and provided much-needed clarity to the entire U.S. market. According to Garlinghouse, this ruling is not only a win for Ripple but for the entire crypto industry.
Ripple Decision Cuts Short SEC Overreach
Garlinghouse also highlighted the significance of the Ripple ruling, stating that it is the first time the SEC has lost a crypto case. He believes that the SEC has largely targeted smaller companies that couldn’t mount a proper defense, and Ripple’s ability to stand up to the regulator sets an important precedent. Garlinghouse describes the SEC as a bully and criticizes its use of regulation through enforcement as the primary tool to build a market.
Furthermore, Garlinghouse argues that the SEC is failing to do the necessary work that other countries, particularly in Europe, have undertaken to provide clear regulations for the crypto industry. He believes that regulatory clarity is essential for investors and entrepreneurs. However, he claims that the SEC is more focused on bringing lawsuits rather than doing the hard work of establishing clear crypto rules.
Despite some experts, like former SEC chief John Reed Stark, suggesting that the Ripple ruling is “ripe for appeal” and likely to be overturned, Garlinghouse remains optimistic. He believes that even if the SEC appeals the ruling in the Second Circuit court, Ripple will ultimately win and solidify the recent judgment. His optimism stems from the belief that the SEC overstepped its authority by claiming that most cryptocurrencies are securities.
Brad Garlinghouse, the CEO of Ripple, has criticized the SEC for prioritizing politics and power over the creation of sound policy. He accuses the regulator of sowing confusion in the crypto market and targeting smaller companies. Garlinghouse believes that the recent Ripple ruling has provided much-needed clarity to the industry and sets an important precedent. He calls for the SEC to do the hard work of establishing clear crypto regulations, like other countries, and expresses optimism that Ripple will ultimately prevail even if the SEC appeals the ruling.