Crypto firm Ripple and the SEC have been waging a legal battle for two years. No one knows the outcome of this trial, which has the crypto community in turmoil. But, most players agree that it will be decisive for the future of the crypto industry. On Thursday, Brad Garlinghouse, the CEO of Ripple, gave an interview to Bloomberg and spoke on the subject. He then explained his concerns about the possibility of the SEC winning the lawsuit.
SEC victory would be bad for the crypto industry
Brad Garlinghouse discussed the potential SEC victory, although Ripple is confident of the outcome of the lawsuit. It was an opportunity for him to highlight the risks that such a victory would represent for the crypto industry. He explained that if the SEC wins the lawsuit, it will step up the crackdown on crypto businesses. Also, it could more easily enforce its crypto regulatory measures that are considered unhealthy.
Ripple’s boss said: “The SEC filed a lawsuit against Ripple and it wasn’t really just a case about Ripple or XRP. It’s really a business concerning the crypto industry“. He added that if the SEC wins the case, it will take further enforcement action against crypto firms. He highlighted that the American regulator plays the offensive and attacks the entire crypto industry. According to him, the SEC is not taking a sound approach to regulating the crypto sector.
Garlinghouse clarified that the SEC’s approach to regulating crypto differs from that of other countries. He claimed: “We see that in other countries they are doing the job properly. They code. They create a framework that allows an industry to grow while protecting consumers“.
What Ripple’s CEO fears is already happening, as the SEC has attacked other crypto companies this year. The American regulator notably attacked the Kraken exchange, forcing it to stop staking on its platform. It also took action against Paxos for issuing the Binance USD (BUSD) stablecoin. Meanwhile, SEC Chairman Gary Gensler said that other than bitcoin (BTC), all cryptos are securities. This whole situation is scaring away crypto businesses, causing the US to lag behind, when it comes to crypto adoption.
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