Ripple CEO Brad Garlinghouse has revealed that he is quite frustrated and upset about the way crypto regulation is handled in the United States.
Litigation between Ripple and SEC continues
Ripple has been under fire for the past few months over a lawsuit filed by the Securities and Exchange Commission (SEC). The company earned billions of dollars by selling illegal XRP tokens, the SEC claims. The commission then filed a criminal complaint against the company and demands the payment of certain fines.
Defending his company, CEO Garlinghouse claims that Ripple is recognized as a currency, not a security, by many leading financial institutions in the United States and abroad. This is why Garlinghouse says the token sale is not illegal and the SEC should give up.
Cryptocurrency regulations are very lacking in the US
In any case, the situation clearly demonstrates that there can be serious misunderstandings when it comes to crypto rules in the United States. And situations like this have happened before. In an interview with CNBC, Garlinghouse said that one of the big problems is that the institutions responsible for crypto regulation are not doing their job right and that traders should not be blamed for all mishaps.
Garlinghouse explained the issue as follows:
There is a misconception about how these technologies can be applied. In the United States, there is no clarity in the regulatory framework. Other countries, G20 markets have invested time and energy through laws or rule-making to provide this clarity and certainty that allows investors to participate and entrepreneurs to build.
There are criticisms of holding XRP as a company
One of the arguments against Ripple is the fact that as a company they own most of the XRPs. The company sells small quantities each month and increases its revenue, which has attracted criticism in recent years. Garlinghouse defended this move and said:
XRP is an open source technology very similar to Bitcoin. But the SEC claims these are investment contracts. “Ripple’s XRP sales to its customers are an investment contract.” they say. This is not true. If you buy XRP, you do not own Ripple.”
The crypto regulatory space in the US is so vague that some presidential candidates have even declared that they will somehow make cryptocurrencies more understandable in the future. In the 2020 election, Michael Bloomberg and Andrew Yang said that if they win the White House by the end of that year, they will make crypto regulations in the US easier to understand.