The United States Securities and Exchange Commission (SEC) is facing backlash from Ripple CEO Brad Garlinghouse over the regulatory body’s lawsuit against Ripple. The lawsuit, which alleges that Ripple sold their token XRP as unregistered securities, is not just about Ripple, according to Garlinghouse. Speaking in a recent interview, he warned that the entire cryptocurrency industry in the US could be harmed if the SEC wins the case.“The macro headline for me is this is not a healthy way to regulate an industry,” Garlinghouse said. “You’re regulation through enforcement as opposed to what we’re seeing in other countries, where they’re doing the work right there, codifying creating a framework that allows an industry to grow while protecting consumers.”He lamented that the US is already lagging behind other countries like Australia, the UK, Japan, Singapore, and Switzerland, which have created clear regulatory frameworks for the cryptocurrency industry.“If the US doesn’t get its act together and move more quickly, all of this is going offshore. It’s just going elsewhere,” Garlinghouse said.He argued that consumers are already suffering as a result of the lack of clear regulations in the US. Without proper protections, crypto firms are being forced to move offshore, leaving US consumers vulnerable.Garlinghouse urged regulators to take a more thoughtful approach to regulation, one that recognizes that not everything in the industry is security.“If your hammer everything looks like a nail and not everything here is a nail, and I think it has to,” he said.He called for a framework that starts with clear protections for consumers but also allows for the efficient trading, exchanging, and moving of currencies.The Ripple CEO’s warning is clear: if the SEC continues to regulate through enforcement, the growth of crypto firms in the US will be stifled, and they will be forced to move offshore. It’s time for regulators to take a more proactive approach and create a framework that allows the industry to thrive while protecting consumers.
