Ripple's CEO Says There's a Contradiction in the SEC's Cryptocurrency Regulations
SEC's Crypto Regulation
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Garlinghouse spoke to Wired's editor in chief at the Collision conference in Toronto, where he addressed the ongoing lawsuit between the SEC and Ripple. Ripple was sued by the SEC in December 2020 over an “unregistered, ongoing digital asset securities offering.” According to the SEC, XRP is a security and not a token.“The SEC now takes the position when they sued us that ‘XRP is and always has been a security,’ but they approved Coinbase to go public, even though Coinbase is not a registered broker-dealer.
Some conflicts here with the SEC. are, almost now within its organization, knowing the right hand of the left hand," Garlinghouse said. The case between Ripple and the SEC has been going on for two years, and there is no clear indication as to how the trial will end.While Ripple has posted some victories, the SEC has put up a strong fight. However, the outcome of this case is expected to set precedence for crypto regulations in the US. In October 2020, Larsen stated that Ripple may leave the US market due to lack of clear guidelines.
Garlinghouse has also criticized SEC Chairman Gary Gensler's remarks about cryptocurrencies being the "Wild West".Gensler said that while crypto was volatile, there was also some level of volatility across all asset classes. The SEC chairman previously stated that most cryptocurrencies were securities. However, he acknowledged that bitcoin could be classified as a commodity that could be regulated by the Commodity Futures Trading Commission (CFTC).
Crypto Regulation, Garlinghouse, CFTC, SEC, Bitcoin, Coinbase, Cryptocurrencies, US Market, XRP Security