CEO of Ripple Brad Garlinghouseis delighted to have rejected a move by the U.S. Securities and Exchange Commission (SEC) where it sought to make a move against the payment company’s fair warning defense.
The ongoing Ripple and SEC lawsuit alleges that the payments company illegally sold XRP as an unregistered security, a summary of the regulator’s overall position in the case.
defending against allegations Ripple his company claimed from the SEC that it “failed to give fair notice that its conduct violated the law, infringing Ripple’s rights to due process.”
In a new interview with Bloomberg, Garlinghouse stated that Ripple’s recent court decision not to apply for a fair warning defense is a victory for the entire crypto industry.
“I think this victory is a victory not only for Ripple but also for the entire crypto industry. The SEC, I think, was constantly trying to really expand their reach and control over the crypto industry. We have clearly seen this not only with Ripple, but also in other examples.”
According to the Ripple CEO, bringing regulatory clarity to the crypto industry may be preferable to regulation by enforcement, an approach where, for example, lawsuits are used to illustrate regulatory policy.
“If we want the US to be a leader in this industry (as it was in the internet industry 20 years ago), we really need regulatory clarity. The SEC pops up saying ‘we’re going to sue and we’re going to act’. They’re not going to offer clear rules so people know how to work like other countries do.”
garlinghouse, SECHe thinks that ‘ is hurting the competitiveness of the cryptocurrency industry in the world’s largest economy.
“I think there is no doubt that the SEC has undermined the competitiveness of this critical industry in the United States. I think they’ve started to move out of sync, not just with other parts of the US government, but also with other major economies around the world.
The only country in the world that considers XRP, the digital asset that Ripple uses in our technology stack, is the United States of America, the only country in the world that thinks XRP can be a security.
We continue to do successful business in England, Switzerland, Japan, UAE, Singapore. All of these countries have agreed that XRP is a currency because it is used that way.”