Ripple chief executive Brad Garlinghouse thinks his company’s recent legal victories over the U.S. Securities and Exchange Commission (SEC) could be a sign of changing times for crypto in the country. In a recent interview with CNBC’s Dan Murphy, Garlinghouse argues that the SEC will soon need to change its tactics of attempting to regulate […]
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The U.S. Securities and Exchange Commission (SEC) has dropped its aiding and abetting charges against Ripple’s top executives. In a letter to Judge Analisa Torres, the SEC notified the court that it is dropping its charges against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. The charges were related to the SEC’s original lawsuit from 2020 […]
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Ripple CEO Brad Garlinghouse says the blockchain-based payments company is seeing more expansive growth outside of the US because of the country’s restrictive stance on crypto. In a new interview on Bloomberg Daybreak: Asia, Garlinghouse says the majority of Ripple’s open positions will be filled by people in countries more accommodative to the crypto industry. […]
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Brad Garlinghouse said Singapore, the U.K., the UAE and Switzerland are jurisdictions with “smart” crypto policies he thinks the U.S. should adopt.
The United States is one of — if not the worst — place to launch a cryptocurrency startup in the world right now, according to Ripple CEO Brad Garlinghouse whose firm is in a legal battle with the U.S. securities regulator.
“The only country I would not encourage you to start a company right now is in the U.S.,” Garlinghouse said on a Sept. 12 panel at Token 2049 in Singapore.
The Ripple boss wants the U.S. to take note from the likes of Singapore, the United Kingdom, the United Arab Emirates and Switzerland by enacting policies that encourage crypto innovation while protecting consumers.
Garlinghouse pointed the blame at the Securities and Exchange Commission claiming its engaging in a political war with the industry with its lawsuits.
That lawsuit strategy isn’t working, said Garlinghouse, and claimed Ripple and Grayscale’s court wins over the SEC may suggest the court’s mood is turning in the industry’s favor.
“I think you're seeing the momentum shift. I think that it used to be that a lot of judges were like: ‘Well the SEC is always right,’ and they weren't fighting that [but] I think you're starting to see the pattern change.”
While the outcomes in Ripple and Grayscale aren’t legally binding, Garlinghouse said the results provide more clarity to crypto exchanges and custody providers operating in the U.S. — at least for now.
OKX president Hong Fang acknowledged the politics at play but stressed for crypto firms to focus on what they can control.
“We can only control what we can control, which is to build the right product and to focus on the technology and to support responsible regulation.”
Despite the U.S. being a big market for Ripple, Garlinghouse said it’s expanding services to countries he claims are more progressive and better understand the potential benefits of blockchain technology.
During the panel, Fang said he thinks investors may not be ready for custody solutions built around a prospective spot Bitcoin (BTC) exchange-traded fund because much of the new blockchain-based infrastructure hasn’t been battle tested by the masses.
“I think there's a huge implication on custody [...] The question I have on my mind is whether our industry is actually ready for it” he said.
Related: Crypto community jubilant over Grayscale decision, but uncertainty remains
Fang acknowledged a spot Bitcoin ETF will lead to more institutional inflows but isn’t convinced that investors can now stomach Bitcoin’s volatility and second guessed the readiness of continuing to build more applications on top of Bitcoin.
“We are actually creating something that is new, that we can build on top of, a new monetary system that hasn't come to fruition yet,” Fang said. “So I don't know whether we're ready for that yet from an industry infrastructure perspective.”
Magazine: Deposit risk: What do crypto exchanges really do with your money?
Crypto-based payments platform Ripple Labs is acquiring blockchain infrastructure firm Fortress Trust, the second major purchase for the company this year. In a new company blog post, Ripple announces its addition of Web3 firm Fortress Trust to handle its infrastructure and regulatory compliance needs. “Through its technology and licensing, Fortress Trust provides critical infrastructure to […]
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Grayscale CEO Michael Sonnenshein emphasized the need for a balanced regulatory approach to cryptocurrency to avoid hindering innovation in the United States.
Grayscale Investments CEO Michael Sonnenshein highlighted a potential negative outcome for United States economy if the Securities and Exchange Commission (SEC) continues to take a one-by-one approach to regulating the cryptocurrency industry.
During a recent interview with Fox Business, Sonnenshein expressed that the SEC could drive crypto firms out of the country by constantly resorting to enforcement actions against the industry.
“If every crypto issued needs to go to a court of law, then we are squashing the innovation taking place here,” Sonnenshein stated.
Likewise, Ripple CEO Brad Garlinghouse echoed similar comments prior to the partial victory of Ripple, which was decided on July 13.
Garlinghouse expressed that the SEC is “looking to kill” innovation and the cryptocurrency in the U.S.
However, Sonnenshein holds a positive outlook regarding the ongoing developments Congress is taking to provide regulatory clarity for the industry.
“A lot of this legislation that this congress could very well pass, could give the industry the actual clarity it needs to move forward in a way that embraces crypto” Sonnenshein stated.
On July 31, Cointelegraph reported that the House Financial Services Committee (FSC) approved the Financial Innovation and Technology for the 21st Century Act with a 35-15 vote.
The act aims to establish registration rules for crypto firms under the jurisdiction of either the Commodity Futures Trading Commission (CFTC) or the SEC.
Sonnenshein pointed out that the SEC is assessing the wrong criteria when determining which Bitcoin ETF should be introduced to the market.
“When I think about the process that the SEC should be untaking here, it’s really not to pick winners and losers, it is to ensure that all the right disclosures are put out there for investors.”
Sonnenshein further explained during the interview that there is room for several spot Bitcoin products on the market.
“We’ve been ready for a world where there are multiple spot Bitcoin products, where there are multiple bitcoin future products on the market" Sonnenshein stated.
He argued that the SEC’s previous approval of the Bitcoin Futures ETF implies it does in fact have an adequate oversight of the Bitcoin market.
“They do not believe there is sufficient surveillance in the underlying Bitcoin market[...]The SEC already has the tools to approve spot Bitcoin ETFs."
Related: SEC decision on Bitcoin ETFs won’t leave out Wall Street giants
On Aug. 11, the SEC delayed its decision on the outcome of the spot Bitcoin ETF proposed by ARK Investment Management.
After its publication in the Federal Register, the SEC initiated a public comment period for the ARK 21Shares Bitcoin ETF.
This marks the most recent postponement in the regulatory decision-making process regarding the approval or disapproval of a spot crypto ETF in the U.S.
Magazine: SBF ordered to jail, Bitcoin ETF delayed and SEC to appeal Ripple case: Hodler’s Digest, Aug. 6-12
The U.S Securities and Exchange Commission (SEC) is reportedly asking a federal judge to pay no heed to the recent groundbreaking court ruling in favor of Ripple Labs and XRP. According to a new report by Bloomberg, the SEC says that the decision, which was a ruling that Ripple Lab’s automated, open-market sales of XRP […]
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Brad Garlinghouse says that the U.S. Securities and Exchange Commission (SEC) has failed on everything that matters after a judge issued a groundbreaking ruling in favor of Ripple. In a new thread, the CEO responds to Fox Business reporter Charles Gasparino, saying that the regulatory agency has no grounds to claim that Judge Analisa Torres’ […]
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Ripple Labs CEO Brad Garlinghouse says that the most recent landmark ruling against the U.S. Securities and Exchange Commission (SEC) has put the regulatory agency in check. In a new interview with CNBC, Garlinghouse says Judge Analisa Torres’ ruling that Ripple’s automated, open-market sales of XRP don’t count as securities is a huge win for […]
The post Ripple’s Brad Garlinghouse Says Landmark Ruling Puts SEC in Check, Calls for Clear Rules of the Road for Crypto appeared first on The Daily Hodl.
According to Ripple CEO Brad Garlinghouse, the filing of an appeal by the U.S. Securities and Exchange Commission would “only further” solidify Judge Torres decision that XRP is not a security.
Ripple CEO Brad Garlinghouse believes the United States Securities and Exchange Commission (SEC) will face a prolonged process before having the chance to appeal Judge’s Torres favorable ruling in the case against Ripple.
On July 13, Judge Torres ruled partially in favor of Ripple Labs in a case brought forth by the Securities and Exchange Commission in 2020, ruling that the XRP (XRP) token is not a security regarding retail sales on digital asset exchanges.
However, Torres ruled that XRP is a security when sold to institutional investors, as it met the conditions set in the Howey Test.
In an interview with Bloomberg on July 15, Garlinghouse dismissed the institutional sales decision as "the smallest piece" of the lawsuit, and believes if the SEC were to file an appeal against the retail sales ruling, it would “only further” solidify the decision that Judge Torres made.
Garlinghouse believes that it could be a while before the SEC can file an appeal.
“As a matter of law, the law of the land right now is that XRP is not a security. Until there is an opportunity for the SEC to file an appeal, which would take years, frankly we are very optimistic.”
Garlinghouse emphasized that this is the first time the SEC has lost a "crypto case." He called out the SEC for being "a bully” and going after “weak players” in the crypto industry who weren’t able to “mount a proper defense.”
He also noted that when the case against Ripple was first filed, a lot of the crypto exchanges in the U.S. had the attitude of waiting to “see what happens,” due to uncertainty.
Related: XRP ruling a ‘watershed moment,’ but we’re not out of the woods yet — Lawyers
This is because the SEC “sowed confusion" in the market, according to Garlinghouse.
“They knew there was confusion, and they actually did things that they knew would increase confusion” he stated.
We said in Dec 2020 that we were on the right side of the law, and will be on the right side of history. Thankful to everyone who helped us get to today’s decision – one that is for all crypto innovation in the US. More to come.
— Brad Garlinghouse (@bgarlinghouse) July 13, 2023
Garlinghouse explained that this “confusion” actually masquerades as “power” to the SEC, but has prevented innovation from happening in the U.S.
“The SEC has been trying to put power and politics over what is really just sound policy and providing clear rules of the road” he stated, adding that it has put made it difficult for U.S. entrepreneurs and investors to participate in the crypto market and blockchain technologies.
