Ripple CEO: SEC Failed To Protect Investors, Then Who Do They Protect?

Ripple CEO Brad Garlinghouse has criticized SEC's actions. (Photo; Doc. CryptoNews)

JAKARTA - Ripple CEO, Brad Garlinghouse, has criticized the role of the United States Securities and Exchange Commission (SEC) in regulating the crypto industry. According to him, the SEC has deviated from its commitment to protecting investors. Garlinghouse also questioned the institution's priorities in the law enforcement process.

This was conveyed by Garlinghouse in a recently ended Ripple's Swell conference in Dubai. In an interview with Dan Murphy of CNBC, Garlinghouse stated that, according to his opinion, the SEC has lost its view of their mission to protect investors. And the question is, who do they protect on this trip?" Garlinghouse told CNBC.

Garlinghouse's statement stems from regulatory moves that want to enforce rules and force the crypto industry to comply with SEC regulations. This is because the securities watchdog chooses a litigation approach to regulate the economy that is developing instead of working with Congress to introduce appropriate regulations for the crypto space.

Reflecting On The Ripple Vs SEC Case

In 2020, financial watchdog sued Ripple with two executives, including CEO, for bailing out a $1.3 billion securities scam by selling XRP to retail investors in the US. The SEC accused Ripple of selling unregistered XRPs, so investors did not have important information about Ripple's digital assets and business activities.

After more than two years of legal feud between the SEC and Ripple, US District Judge Analysis Torres in Manhattan finally ruled in July that XRP is not a security and is not included in the criteria for security tokens.

The SEC filed an appeal but was rejected by the court. Then in October, the US regulator withdrew the securities lawsuit against Garlinghouse and other Ripple executives, Chris Larsen.

Responding to these positive developments, Garlinghouse expressed its optimism, not only for Ripple but also for the entire crypto industry. He sees Ripple's victory as a positive step. He hopes this will pave the way for the crypto industry to thrive in the United States.

I think this is a positive step for the industry, not only for Ripple, not only for Chris and Brad, but for the entire industry, that the SEC has been controlled in the United States. And I hope this will be the melting of ice sheets in the United States because it really sees an extraordinary industry that has great potential to thrive in the country with the largest economy in the world," Garlinghouse told CNBC.

It didn't stop there, Garlinghouse revealed that Ripple had shifted its recruitment focus to other jurisdictions. He said that Ripple would recruit 80% of its workforce from countries that have clearer and more friendly crypto regulations.

Garlinghouse also points to the contrast between the US government and Singapore, where the Singapore government collaborates with the crypto industry, provides explicit regulations, and witnesses substantial growth. He said that's why Ripple recruited employees there.