Ripple CEO Brad Garlinghouse has criticized the US Securities and Exchange Commission (SEC) for its approach to regulating the crypto industry. In a recent interview with Bloomberg, Garlinghouse suggested that the SEC's enforcement-focused approach is not a "healthy way" to regulate the industry and may make the US a less attractive location for crypto firms.
SEC's Lawsuit against Ripple
Garlinghouse believes that the SEC's lawsuit against Ripple is evidence of the regulator playing "offense" and "attacking" the entire industry. He fears that if the SEC prevails in the case, it will pave the way for many more similar cases, putting the US at "severe risk" of losing its position as a hub for crypto innovation.
Crypto Industry Moving Outside US
Garlinghouse notes that the crypto industry has already started to move outside of the US due to the country's outdated and behind-the-times crypto regulation process compared to countries such as Australia, the UK, Japan, Singapore, and Switzerland. He commends these countries for taking a thoughtful and proactive approach to creating "clear rules of the road" for crypto.
Early Adoption of the Internet
Garlinghouse recalls that in the late 90s, there were proposals to ban the internet due to illicit activity, but the government created a framework instead. He believes the same opportunity is currently available for crypto and that the framework process should begin with clear consumer protections.
Call to Action from Crypto Law Lawyer
Recently, John Deaton, the founder of Crypto Law Lawyer, called for all companies in active litigation with the SEC to collaborate and develop coordinated strategies, calling the situation "war." This comes after the CEO of the Blockchain Association, Kristin Smith, criticized the US crypto regulation process for happening "behind closed doors" and called for more industry involvement in an open process.