Ripple CEO Brad Garlinghouse warns of negative consequences for the entire crypto industry if the US Securities and Exchange Commission (SEC) wins the lawsuit against the payment company.
In a new Bloomberg interview, Garlinghouse says that if the SEC wins the lawsuit claiming XRP is a security, this outcome will have ramifications for the entire crypto industry.
“The SEC bringing the case against Ripple wasn’t really just a case about Ripple or about XRP. It’s really about the industry and how the SEC is kind of playing offensive and attacking the whole industry. Two and a half years ago, when it started, I’m not sure everyone quite digested it.And now it’s widely understood.
This is going to be critical for the entire industry, because if the SEC is able to prevail, I think there are many other cases, and some of them just in the last four weeks: I think they filed five additional enforcement cases. “
According to Ripple CEO, the way the SEC is going about regulating the US crypto industry is “not healthy”.
“The macro headline for me is that this is not a healthy way to regulate an industry. Regulation through enforcement as opposed to what we see in other countries where they do the work – they codify, they create a framework that allows for an industry to grow while protecting consumers.”
Garlinghouse says that the regulatory uncertainty in the US will and does negatively affect the world’s largest economy.
“Look at the benefits to the US on a geopolitical basis of having the Amazons and Googles based and headquartered in the US.
I think we are at serious risk of that not happening in this next evolution of technology around blockchain and crypto. It has already started moving outside the US.
And consumers also suffer because of it. Because you don’t have the same protection that the US legal framework can provide.”
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