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- 1 Brad Garlinghouse highlights concerns in case SEC wins the lawsuit.
- 2 The regulatory watchdog initiated the lawsuit against Ripple in 2020.
The cryptocurrency market has failed to impress a majority of regulators globally. The Securities and Exchange Commission (SEC) currently remains the top agency to wreak havoc on the sector. Currently, they are involved in a lawsuit against Ripple, a digital asset settlement exchange, in which they claim to have traded their native asset, XRP, as an unregistered security. The company CEO, Brad Garlinghouse, recently highlighted what the US watchdog win could do to the industry.
Ripple CEO Suggests a Customer Focused Framework
In a recent interview with Bloomberg, Ripple’s CEO claimed SEC’s regulatory approach towards the cryptosphere is unhealthy. He says that the agency is ‘playing offense and attacking the industry as a whole.’ Brad cited that similar proposals to ban the internet were being made upon its initiation concerning the potential illicit acts on the newly created global network.
The reason lawmakers are stressing over tighter regulations over the market is that it is an open source network. Anyone can create a cryptocurrency and operate it accordingly. Moreover, malicious actors can easily use these assets to launder money anonymously.
Instead of going so harsh, Garlinghouse suggests a more customer-focused regulatory framework that centers around eliminating financial risks. He also believes that the SEC’s win in the lawsuit may render the United States less attractive to crypto companies. The market is already in turmoil and this may only give the sector a push into another crypto winter.
Digital assets are yet to go mainstream around the globe with some nations treating cryptocurrencies as legal property while many are still skeptical over whether to regulate or ban them. Currently, El Salvador and the Central African Republic (CAR) remain the only countries using virtual currencies as their legal tender.
Despite the fact that the US is currently the biggest segment of the crypto industry, the country has not accepted them as legal tender. However, digital asset exchanges can legally operate on the soil. This remains a common pattern among a majority of nations.
Crypto exchanges in Japan are required to register with the Financial Services Agency (FSA) after the nation tightens its regulations over digital assets following the $350 Million hack involving Coincheck, a cryptocurrency exchange. In Australia, virtual currencies are considered legal tender and are subject to capital gain taxes. China remains among the countries where both virtual assets and exchanges trading them are barred.
If Ripple wins, what Brad Garlinghouse says may come true as the authorities will have an upper hand that may treat all the crypto assets the same. However, many believe that Ripple has more chances of winning the lawsuit. In a recent update, the company has urged Judge Analisa Torres to consider a previous filing that supported the organization’s Fair Defense Notice during the final verdict.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
