Ripple Vs SEC Case Is A Cryptocurrency Industry Problem In General

JAKARTA - The case of Ripple vs the US Securities and Exchange Commission (SEC) which is still going on for more than two years is not just a Ripple problem. However, this is a challenge that the crypto industry as a whole has to face.

In an interview with Bloomberg on Thursday, March 2, Ripple CEO Brad Garlinghouse warned of dangerous consequences for the crypto industry if the US Securities and Exchange Commission (SEC) won a lawsuit against him and his company over the sale of XRP.

Garlinghouse insists that the SEC is "playing offensive and attacking" the entire crypto industry, and this would be very important for the entire industry if the SEC could win its lawsuit over XRP. It also highlighted that the SEC's focus on law enforcement differs from other countries' regulatory approaches related to cryptocurrencies.

Garlinghouse cites the law enforcement-centric SEC approach to regulating the crypto industry and argues that "Macro title for me is not a healthy way to regulate the industry."

He added that many crypto businesses have moved abroad and that the US is behind Australia, Britain, Japan, Singapore and Switzerland in creating clear road rules for the crypto industry.

Garlinghouse explained that when he first became involved in the tech industry in the late 1990s, "some people said that the internet should be banned." But the US government said: 'no, no, no, we will create a framework. And this allows entrepreneurs, who allow investors to enter and see the benefits for the United States geopolitically."

Garlinghouse also warns that the US is at risk of losing its "next-to-leading technological evolution around blockchain and crypto," and consumers suffer from not having the same protection that US regulatory frameworks can provide.

The securities regulator sued him and his company in December 2020 on charges that XRP sales were unregistered securities offerings. Garlinghouse has stated that XRP is not a security, and is anticipating the outcome of this case this year, likely in the first six months.

In Garlinghouse's view, the SEC's lawsuit against Ripple and XRP is not just a case about Ripple or XRP, but about the entire crypto industry. He stressed that if the SEC wins, more law enforcement will be made against crypto companies.

Garlinghouse compares the SEC approach to other countries' regulatory approaches related to cryptocurrencies, where these countries have created a framework that allows the industry to grow while protecting consumers.

Ripple CEO Brad Garlinghouse warned of dangerous consequences for the crypto industry if the SEC wins a lawsuit against him and his company over the sale of XRP. He also highlighted that the SEC's focus on law enforcement differs from that of other cryptocurrency-related country regulatory approaches and many crypto businesses have moved overseas due to SEC actions.