Garlinghouse joins CFTC Commissioner Pham to criticize SEC’s regulatory approach.
Brad Garlinghouse, the CEO of Ripple, has commended CFTC’s Commissioner Caroline D. Pham for calling out the Securities and Exchange Commission over its crypto regulatory approach.
The Ripple CEO took to Twitter to describe the comments made by Commissioner Pham as powerful.
“Powerful words from Commissioner Pham: ‘Regulatory clarity comes from being out in the open, not in the dark,” Garlinghouse tweeted.
According to Garlinghouse, the Securities and Exchange Commission seems satisfied with operating in the dark rather than being transparent with its policies.
“Unfortunately, the SEC seems more than content to operate in the latter,” he said.
Powerful words from Commissioner Pham: “Regulatory clarity comes from being out in the open, not in the dark.”
Unfortunately, the SEC seems more than content to operate in the latter. https://t.co/rsvGTHGlsz
— Brad Garlinghouse (@bgarlinghouse) July 21, 2022
CFTC Commissioner Slams the SEC
Yesterday, Commissioner Pham slammed the Securities and Exchange Commission’s lawsuit against Ishan Wahi et al. She described the lawsuit as another example of the SEC’s adoption of the “regulation by enforcement” approach.
Commissioner Pham argued that the allegations leveled by the SEC against Wahi could have severe future consequences beyond the case if not addressed by policymakers.
“Major questions are best addressed through a transparent process that engages the public to develop appropriate policy with expert input—through notice-and-comment rulemaking pursuant to the Administrative Procedure Act,” Commissioner Pham said.
SEC Ignores Calls for Clearer Crypto Regulations
Interestingly, CFTC Commissioner Pham’s comments correspond with the views held by cryptocurrency experts.
The cryptocurrency community has called on the agency to provide clearer regulations to enable the nascent industry to thrive. However, the SEC has ignored these calls, as it believes its laws are clear enough.
Aside from Bitcoin, the Securities and Exchange Commission considers other cryptocurrency assets as securities.
Ripple Fighting for the Entire Crypto Industry
In December 2020, the SEC charged Ripple and two of its executives, including Garlinghouse, for conducting unregistered security offering in 2013.
The lawsuit has been ongoing for more than a year, with Ripple committed to following the case to its logical conclusion for the good of the entire cryptocurrency industry.
It is noteworthy that a win for the SEC would see the agency continue its “regulation by enforcement” method over cryptos.
However, if Ripple wins the lawsuit, the SEC would be compelled to provide regulatory clarity for the nascent asset class.
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