Nikolas Sargeant
Ripple’s CEO, Brad Garlinghouse, criticizes the US Securities and Exchange Commission (SEC) for its perceived lack of clear cryptocurrency regulations. Garlinghouse argues that while other countries have implemented regulatory frameworks, the SEC has lagged behind.
Criticizing SEC's Regulatory Approach
Garlinghouse humorously suggests that a simple input on the AI-powered chatbot ChatGPT could potentially yield more effective regulatory guidance than what the SEC has accomplished so far. He expresses frustration, stating, "I’ve jokingly suggested maybe what we should do is type on ChatGPT how should the US regulate crypto, and that’s more than the SEC has done, and it’s frustrating."
Garlinghouse asserts that SEC Chairman Gary Gensler has demonstrated hostility toward the digital asset sector by enforcing regulations through litigation. He proposes the CFTC as a more suitable regulator, highlighting its focus on overseeing commodity futures, options, and swaps, in contrast to the SEC's emphasis on securities markets.
SEC vs. Ripple Legal Battle
The ongoing legal battle between Ripple and the SEC began in December 2020 when the SEC sued Ripple for allegedly conducting an unregistered security offering of XRP. Ripple secured favorable rulings in the lawsuit, with a federal judge stating that XRP sales to retail investors did not constitute an offer of investment contracts.
In subsequent months, the US magistrates dismissed the SEC's appeal intentions, and accusations against Ripple's CEO and Executive Chairman were cleared. The trial is scheduled for April 23, 2024, with the SEC required to file remedies by March 13, 2024, and Ripple to respond by April 12, 2024.
Recently, the SEC requested Ripple's financial statements for 2022-2023 and post-complaint contracts governing "Institutional Sales." Ripple sought an extension, pushing the response deadline to January 19.
The crypto industry eagerly awaits the lawsuit's outcome, recognizing that a favorable decision for Ripple could trigger an XRP price rally and overall market growth. At the same time, an adverse ruling may lead to stricter regulations.
