Ripple CEO Brad Garlinghouse is warning of negative consequences for the entire crypto industry if the U.S. Securities and Exchange Commission (SEC) triumphs in the lawsuit against the payments firm.
In a new Bloomberg interview, Garlinghouse says that if the SEC prevails in the lawsuit in which it alleges XRP to be a security, that outcome will have implications for the whole crypto industry.
“The SEC bringing the case against Ripple was not really just a case about Ripple or about XRP. It’s really about the industry and how the SEC is kind of playing offense and attacking the whole industry. Two and a half years ago when it started, I’m not sure everyone fully digested that. And now that is widely understood.
This is going to be pivotal for the whole industry because if the SEC is able to prevail, I think there’s a lot of other cases and some of them just in the last four weeks: I think they brought five additional enforcement cases.”
According to the Ripple CEO, how the SEC is going about regulating the US crypto industry is “not healthy.”
“The macro headline for me is this is not a healthy way to regulate an industry. Regulation through enforcement as opposed to what we are seeing in other countries where they are doing the work – they are codifying, they are creating a framework that allows an industry to grow while protecting consumers.”
Garlinghouse says that the regulatory uncertainty in the US will and is negatively impacting the world’s largest economy.
“Look at the benefits to the United States on a geopolitical basis to have the Amazons and Googles based and headquartered in the United States.
We are at, I think, severe risk of having that not happen in this next evolution of technology around blockchain and crypto. It has already started moving outside the United States.
And also the consumers are suffering because of that. Because you don’t have the same protections that the US regulatory frameworks can provide.”
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