US Securities and Exchange Commission (SEC) regulation through "enforcement" rather than "do the job" is not a "healthy way" to regulate an industry , and may make the US a less attractive place for cryptocurrencies. signatures, suggests Ripple CEO.
In a March 3 Bloomberg interviewBrad Garlinghouse, CEO of blockchain-based digital payment network Ripple, has suggested that the SEC's regulatory focus is putting the US on the back burner.
Garlinghouse noted that the SEC's case against Ripple is that the SEC is simply playing "offensive" and "attacking" the industry as a whole, adding that if the SEC "can prevail," there will be "plenty of other cases."
He suggested that the crypto industry has โalready started to move outโ of the US given that its crypto regulation process is โbehind.โ other countries as "Australia, UK, Japan, Singapore and Switzerland".
He praised these countries for taking "the time and consideration" to create "clear rules of the road," adding that the approach taken by the US is not a "healthy way to regulate an industry."
Garlinghouse recalled that when he "first entered the technology industry in the late 1990s," there were proposals to ban the Internet due to "illicit activities," but the government refuted the idea and decided to "create a framework."
He emphasized "the benefits" that this early adoption brought on a "geopolitical basis", to have "Amazon and Google" headquartered in the US, suggesting that the same opportunity is currently on the table with the creation of a framework for cryptography.
Garlinghouse believes that the framework process should begin by outlining "clear consumer protections".
It added that consumers are suffering from the "lag" as they lack the "same protection" that regulatory frameworks "can provide."
Garlinghouse believes that a decision should come this year regarding the SEC's case against Ripple.
Related: Ripple Survey: 97% of Payment Companies Believe in the Power of Crypto
Most recently, John Deaton, founder of legal news outlet Crypto Law Lawyer, issued a call to action to his 245,000 Twitter followers on March 5, stating that all the companies in "active litigation" with the SEC, you must collaborate and develop "coordinated strategies," calling it "warfare."
We must think outside the box and organize. For example, all companies in or about to be in active litigation with the SEC should come together, share ideas, and develop coordinated strategies. It's a war.
I will be happy to help. maybe i can replace @Elon Musk as the most hated of the SEC.
โ John E. Deaton (@JohnEDeaton1) March 5, 2023
This comes after Kristin Smith, CEO of the Blockchain Association, told Bloomberg in an interview on February 22 that the process of regulating cryptocurrencies in the US. it's happening โbehind closed doorsโ, adding that it is vital for greater industry participation in an โopen processโ.
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