Ripple’s CEO Brad Garlinghouse criticizes the U.S. SEC for deviating from its role of safeguarding investors, as the legal battle between Ripple and the SEC continues over the classification of XRP tokens.
Ripple CEO’s Criticism of SEC
During the Ripple Swell conference in Dubai, Ripple CEO Brad Garlinghouse expressed his belief that the U.S. SEC has strayed from its duty to protect investors. He questioned the agency’s motives in the legal dispute with Ripple.
Legal Battle and Recent Developments
In 2020, the SEC accused Ripple and its executives of securities fraud involving the sale of XRP tokens. However, a judge ruled in favor of Ripple, stating that XRP itself is not a security. The SEC subsequently dropped its charges against Ripple executives.
CEO’s Optimism and Critique of SEC’s Regulatory Tactics
Garlinghouse expressed optimism about the impact of the legal developments on the cryptocurrency industry. He criticized the SEC’s approach of regulation through enforcement, emphasizing the need for a more balanced and sustainable regulatory framework.
Ripple and XRP
Ripple, a payments company, utilizes blockchain technology for cross-border money transfers. It operates RippleNet, facilitating global fund transfers for financial institutions. The company also leverages XRP, a cryptocurrency, for these transactions.
The Controversy Surrounding XRP
XRP, closely associated with Ripple, is utilized as a ‘bridge’ currency for cross-border transactions. However, its ownership and distribution have been contentious, with the SEC raising concerns about its classification as a security.