The CEO of Ripple Labs has warned of the harm to the crypto industry if the U.S. Securities and Exchange Commission (SEC) is able to prevail in its lawsuit against Ripple over xrp. He cautioned that the SEC’s enforcement-centric approach to regulating crypto “is not a healthy way to regulate an industry.”
Ripple CEO Brad Garlinghouse warned about harmful consequences to the crypto industry if the U.S. Securities and Exchange Commission (SEC) wins its lawsuit against him and his company over the sale of XRP in an interview with Bloomberg on Thursday.
“The SEC bringing the case against Ripple was not really just a case about Ripple or about XRP. It’s really about the industry,” Garlinghouse began. Asserting that the SEC is “playing offense and attacking” the entire crypto industry, the Ripple CEO stressed:
This is going to be pivotal for the whole industry.
He further warned that “if the SEC is able to prevail” in its lawsuit over XRP, more enforcement will be carried out against crypto firms. The securities watchdog recently took action against Kraken, over the cryptocurrency exchange’s staking program, and Paxos over its issuance of stablecoin Binance USD (BUSD). Furthermore, SEC Chairman Gary Gensler believes that all crypto tokens other than bitcoin are securities.
The Ripple executive proceeded to explain that the SEC’s focus on enforcement differs from the regulatory approaches of other nations with regard to cryptocurrencies.
Noting that a lot of crypto businesses are already moving offshore, Garlinghouse emphasized: “The sad reality is the U.S. really is already behind … This is not behind countries that we haven’t necessarily heard of. This is behind Australia, and behind the U.K., Japan, Singapore, and Switzerland. There’s a lot of countries that have taken the time and thoughtfulness to create that clear rules of the road.”
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