Ripple’s CEO Brad Garlinghouse mentioned that US authorities’ inability to enforce transparent rules on the cryptocurrency industry is frustrating. He went on to blast the state regulator SEC for maintaining that the XRP token is a security.
Ripple, known for its cryptocurrency XRP, has been in a high-stakes legal battle with the United States Securities and Exchange Commission since last year. In December, the SEC charged Ripple, Garlinghouse, and a co-founder, alleging they raised over $1.3 billion via a non-registered securities offering.
Crypto Clarity is Lagging in the U.S.
With cryptocurrency industry development over the last year or so, world regulators have started to talk more seriously about what kind of legislative structure should be developed. However, even as some nations are more open-minded, others, including the US, are far behind, according to Brad Garlinghouse.
He characterized the crypto regulation attempts as “frustrating” in a recent interview with CNBC. The largest economy in the World has suggested some possible laws, but they were considered restrictive by the crypto industry. In the end, the administration of Biden paused their development.
Yesterday, a new initiative, as a joint crypto-task force with the SEC and the CFTC, was adopted by the House of Representatives. A report is expected in one year with several recommendations on market development, safety and protection of financial operations institutions with cryptocurrencies. Other necessities include cybersecurity aspects, proposals to comply with anti-money laundering and counteract the funding of terrorist activities under the Banking Secrecy Act.
Garlinghouse believes, however, that this approach may be a little too late in comparison with advanced countries. He said that he credits markets such as Singapore and even areas of Korea where the government has made a thoughtful effort to define and establish a clear regulatory framework for cryptocurrencies.
Is XRP a Security?
Garlinghouse took the opportunity to also blast the nation’s financial watchdog for claiming XRP token is a security. He also criticized the United Nations for its lack of decisive crypto regulation incentives.
As reported earlier, the Securities and Exchange Commission claims the payment processor was making a non-registered security offer for the XRP token. Although the legal battle is ongoing, other nations have resisted and maintained that the native digital token of Ripple is a currency.
In the meantime, according to SBI Group chief Yoshitaka Kitao, Ripple plans to list its shares publicly following the resolution of the continuous conflict over the status of XRP with the US financial regulator.
SBI has extensively invested in new Fintech, like Ripple and its rival the R3, as a transitional finance industry giant. Kitao emphasized that if the San Francisco-based company became public, the investment would pay off.