US Securities and Exchange Commission (SEC) Prioritizes “Politics and Power” Over Making “Sound Policies,” Ripple CEO Brad Garlinghouse Says Said said in a July 15 interview with Bloomberg.
Garglinghaus has repeatedly criticized regulatory oversight bodies, saying the SEC is creating turmoil in the market instead of providing clear rules for cryptocurrencies. he said:
“…they [SEC] Knowing there was chaos, they took action knowing it would actually increase chaos, but only because this chaos is actually masquerading as power to the SEC. . ”
He said the Ripple ruling that XRP itself is not a security has cleared up some of the confusion the SEC has caused. The ruling will bring much-needed transparency to the entire U.S. market, and thus “is also a win for the entire crypto industry,” he said.
Garglinghouse went on to say that Ripple’s decision stopped SEC Chairman Gary Gensler from “going too far” by claiming that most cryptocurrencies are securities. he added:
“Ironically, no other country on the planet considered XRP to be a security, and it’s great to see that made clear here in the US market.”
Ripple stands up to ‘bullies’
Garlinghouse emphasized the importance of the Ripple ruling, stating that it was “the first time the SEC has lost a cryptocurrency lawsuit.” In fact, he said, the SEC has had little challenge because regulators have targeted small businesses.
“I think the SEC has been a bully and has been chasing weaker players who can’t put up a proper defense.”
Garlinghouse said cryptocurrency giant Ripple had the “fortitude” and “courage” to stand up to the SEC. The crypto industry “needed someone to fight” because the SEC has used regulation by enforcement as its primary tool, but this is “not a good way to build a market,” he said.
According to Garlinghouse, the SEC has not put in the hard work that Europe and other countries have done to provide clear cryptography rules. He noted that regulatory clarity could help investors and entrepreneurs, adding:
“…the SEC is still focused on filing lawsuits.”
SEC appeals could take years
Some experts, such as former SEC Internet Enforcement Chief John Reid Stark, say the Ripple ruling is “ripe for appeal” and likely to be overturned. But Garlinghouse said it could take years for the SEC to appeal.
Additionally, Garlinghouse is “very optimistic” that even if the SEC files an appeal with the Second Circuit, Ripple will prevail, cementing its recent ruling. His optimism is based on the fact that the SEC has overstepped its authority claiming most cryptocurrencies are securities.