As lawsuits continue with the U.S. Securities and Exchange Commission (SEC), Ripple CEO Brad Girllinghouse insisted the commission did not provide any clarification on crypto control. He said the SEC is using its meetings with crypto companies as a key generation for implementation activities, and the company has lost sight of its mission to protect investors.
Ripple CEO claims that SEC uses meetings with crypto companies as key products for implementation
In the SEC’s case on XRP, Ripple CEO Brad Girlinghouse reiterated his concern about the lack of clarity in the crypto regulation provided by the Securities Watchdog. On Saturday, he tweeted:
The SEC is on the line of American innovation due to its refusal to provide a clear framework for crypto. Instead of working with the industry, the SEC is using their meetings with companies as a lead generation for their applicable work.
Ripple CEO’s tweet followed his interview on Fox Business Friday where he discussed the XRP case and its implications, as well as the lack of clarity in crypto control.
“I think there was and is a lack of clarity,” Girlinghouse insisted. Girlinghouse insisted that “these two things do not exist.”
He also mentioned the Nasdaq-listed crypto exchange Coinbase, which recently abandoned plans to launch an nding product after the SEC threatened a lawsuit. The exchange said the commission did not comment on the decision.
Discussing the XRP lawsuit, Girlinghouse said the SEC’s “mission is to protect investors and help ensure an orderly market.” However, he argued that in the case of XRP:
More than 10,000 people containing XRP have filed a class-action lawsuit against the SEC. The SEC is supposed to protect the right people.
He added that, without elaborating, the securities watchdog “allows XRP to be listed and allowed to trade very freely in the United States.” As a result, “more people got involved” and XRP “did business for eight years, and then [the SEC] Bring a suit by reducing the price by 60% or 0%.
Girlinghouse commented: “If the goal is an orderly market and the goal is to protect investors, I think we have lost sight of the big picture of what the SEC’s main order is.”
Ripple executives were asked what Gary Jensler’s last game was with Ripple, XRP and the whole crypto business. He replied:
I think we lose sight because crypto is controlled. It is regulated by the CFTC, it is regulated by other government agencies, it is Finsen, the US Treasury. So, when I hear SEC people come in and say, ‘Hey, it’s the Wild Wild West, it’s not regulated,’ it’s not entirely true.
Girlhouse is not only concerned with the lack of transparency in crypto control. U.S. Senator Pat Tommy wrote a letter to Gensler on Friday seeking clear guidance on crypto control. SEC Commissioner Hester Pierce also expressed concern about the lack of clarity regarding crypto regulation.
Girlinghouse further noted that the SEC often said, “Hey, talk to us.” However, “whenever someone from the crypto community goes to talk to them, it seems like it’s the next generation of leadership to take action. It’s not a good way for us to help enrich this industry in the United States,” he said.
The SEC claims that XRP is not a security, like Bitcoin or Ether and that it must be registered and regulated. Girlhouse explains: “If you start considering XRP as a security, it means that you are subject to a lot of rules. [and] Costs associated with security settlement. The magic of XRP is how incredibly fast and how incredibly affordable it is to pay at the border, how Ripple uses technology. The CEO warned:
If you start considering it as security, the cost and speed change dramatically and really it is an example where the SEC is picking the winners and losers of this new industry.
Ripple’s legal team recently said it has no plans to settle with the SEC and is confident that SEC chairman Gensler will be convinced that “following this lawsuit is leading the crypto business winners and losers to the loss of innovation.”
Do you agree with Ripple CEO Brad Girlhouse? Let us know in the comments section below.
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