Ripple CEO Brad Garlinghouse is in the news today after he tweeted about the state of the crypto industry in the United States. According to the exec, the industry needs to restore trust through usability and transparency.
Garlinghouse argued that the industry must work together to move forward and bridge the confidence gap mentioned above. To make his point, he cited FTX and Terra as examples of companies that shattered trust in cryptocurrencies
That said, the exec did claim that the crypto industry faces significant headwinds, such as the Securities and Exchange Commission (SEC) waging war against cryptocurrencies. Garlinghouse even criticized SEC Chairman Gary Gensler’s call for crypto companies to register, claiming that there is no infrastructure to trade a “registered token” and that there is no clarity on what these tokens are.
Ripple’s CEO also urged US authorities to properly regulate the industry, noting that many other G20 countries are already developing frameworks and providing guidance. As an example, he mentioned the EU Regulations for Crypto Asset Markets (MiCA).
SEC v. Ripple is still pending
Garlinghouse also took the opportunity to take a look at the SEC. Referring to Judge Analisa Torres’ latest ruling in the SEC’s case against Ripple, the company’s CEO wrote,
“It’s only Tuesday, but it’s not going to be a great week for the SEC (this ruling, Voyager, Grayscale).”
In addition, according to Ripple General Counsel Stuart Alderoty, the confidence of the blockchain payments company grows with each ruling in its legal battle against the SEC. For now, it appears that the SEC’s arguments that XRP is a security have met with significant setbacks.
While the SEC has ramped up its crypto enforcement actions in what appears to be an attempt to put a stranglehold on the nascent market, recent trends show industry participants making their voices heard in court. The SEC’s investigation into whether XRP is a security has been going on for more than two years now.
The SEC recently stepped up its campaign against unregistered securities, claiming that they have put investors in dangerous situations due to a lack of transparency.
The regulatory body last month penalized Kraken with a $30 million settlement, forcing it to end its crypto staking program. The SEC has also warned Paxos about its plans to sue them for issuing Binance USD (BUSD). According to the SEC, BUSD is an unregistered security.