Ripple CEO: President Biden’s Cryptocurrency Executive Order Is a Win for the Broader Industry Ripple and SEC have reduced the Competitiveness Of the Crypto Industry, As The Only Country in the World That Considers XRP security is the U.S.
In a recent interview with Bloomberg, Brad Garlinghouse, CEO and founder of Ripple, applauded President Joe Biden’s administration for releasing the cryptocurrency executive order, which provides some sort of regulatory clarity for the industry.
The cryptocurrency executive order, which recommends that all relevant United States federal agencies collaborate with each other, contravenes what has been practiced in a country where different regulatory bodies have diverse views on cryptocurrencies.
Interestingly, the recommendation that all relevant agencies should collaborate and establish a general rule for the cryptocurrency industry would see the nascent space thrive, while protecting investors from the possible risks that may arise from using digital currencies.
SEC’s Crypto Regulatory Approach Has Reduced the Industry’s Competitiveness
“I think [the executive order] is a victory not just for Ripple but also for the whole cryptocurrency industry because the SEC has consistently tried to expand its control over the crypto industry [as seen in its previous actions],” Garlinghouse said.
Ripple CEO added that the SEC’s approach of going hard on cryptocurrencies has reduced the competitiveness of the nascent industry as every crypto-related firm is more focused on avoiding getting into trouble with the securities agency.
“There is no question that SEC has reduced the Competitiveness of this critical industry (crypto) in the United States. I think they have been acting out of their range. The only country in the world that considers XRP security is US, we work successfully in UK, Switzerland, Japan, UAE, Singapore, all of these countries have acknowledged that XRP is a currency. So if you want the US to be a leader in this innovative industry, we need that regulatory clarity.
Calls for Regulatory Clarity Ignored
The broader cryptocurrency industry in the United States has on several occasions called for regulatory clarity from the SEC in a bid not to avoid breaching its laws.
Unfortunately, these calls have been neglected, with the SEC maintaining that its rules are clear and it determines which assets constitute security.
Several crypto firms, including Ripple, have fallen prey to a lack of regulatory clarity from the SEC.
While other firms are trying to avoid getting into a lengthy legal battle with the agency and complying with every directive from the SEC, Ripple did not take a similar approach as it continues to show its determination to prove the securities regulator wrong this time.
Ripple is confident that its cryptocurrency, the XRP, is not a security but a currency because other countries, including the United Kingdom, United Arab Emirates (UAE), Switzerland, etc deem the cryptocurrency as a currency.
However, it is only the United States that still considers XRP to constitute a security.
As the lawsuit progresses, Ripple intends to use the Fair Notice Defense to prove that the SEC never gave it any prior notice, which is clearer regulation, that its cryptocurrency offering would breach its rules.