Garlinghouse believes the SEC does not care about anything but its interests alone.
Brad Garlinghouse, the CEO and founder of payments company Ripple, has slammed the Securities and Exchange Commission for its inability to abide by its laid down rules.
The Ripple boss, who is also one of the executives charged in the company’s hallmark lawsuit, noted that his experience with the SEC has made him realize how ironic it is for the commission to provide disclosure on key issues.
“[…] Guess they don’t need to abide by their own rules…,” Garlinhouse said.
Garlinghouse added that the Securities and Exchange Commission does not care whether the United States falls behind in terms of regulatory matters, as its only focus is to protect its own “jurisdiction at the expense of U.S. citizens.”
The SEC seems perfectly content to let the US fall further behind – all in the name of protecting their own jurisdiction at the expense of US citizens. Politics over policy is good for no one. We need a clear regulatory framework now.
— Brad Garlinghouse (@bgarlinghouse) April 22, 2022
Calls for Regulatory Clarity
The Ripple CEO reiterated that there is a need for a clearer regulatory framework, as the SEC’s approach of opting for politics over policy will not yield positive results for the United States and its citizens.
It is worth noting that Ripple’s boss comments were in response to a thread made by the company’s general counsel Stuart Alderoty, who criticized the government’s security agency for “no disclosure” in listing exchanges and tokens securities-related.
The Biden EO estimated that 40M Americans own crypto today – no thanks to the SEC who insist on saying that all – or most tokens – are securities, and that US exchanges are running unlawful security exchanges. If you ask which ones? No comment. No disclosure.
— Stuart Alderoty (@s_alderoty) April 22, 2022
This is not the first time the SEC has been urged to establish clearer regulations for the cryptocurrency industry in a bid to aid crypto-related companies to avoid breaching the agency’s rules.
However, calls by industry experts have not been attended to, as the SEC has stated explicitly that its rules are clear and can be easily understood by everyone.
With the SEC not willing to provide a clear regulatory framework, the industry is relying on a cryptocurrency executive order that was recently published by the Joe Biden administration.
Per the executive order, all federal agencies are obligated to collaborate to provide a unified regulation for the cryptocurrency industry in order to make the nascent asset class thrive and to protect investors and the economy from associated risks.