Ripple CEO Brad Garlinghouse has once again faulted the United States regulator, the Securities Exchange Commission (SEC), for bringing a lawsuit against the payment company.
According to Garlinghouse, the case is likely to have a ‘pivotal’ effect on the overall crypto sector while terming it as an unhealthy way to regulate the industry during an interview with Bloomberg on March 2.
He argued that the SEC needs to find alternatives to regulating the industry instead of selecting enforcement, considering the regulator has recently brought more cases against players in the industry.
“SEC bringing the case against Ripple was not really just a case about Ripple or about XRP; it’s really about the industry and how the SEC is kind of playing offense and attacking the whole industry. <…> This is going to be pivotal for the whole industry. <…> The macro headline for me is this is not a healthy way to regulate an industry,” Garlinghouse said.
U.S. missing out on crypto evolution
The executive also warned that the SEC’s approach to regulations puts the U.S. at risk of missing out on taking the lead in the blockchain and crypto space. He suggested that most players are already shunning the country due to regulatory uncertainty.
“The sad reality is the U.S. really is already behind. <…> This is behind Australia and behind the UK, Japan, Singapore, and Switzerland. There are a lot of countries that have taken the time and thoughtfulness to create that clear rules of the road. <…> We are at, I think, severe risk of having that not happen in this next evolution of technology around blockchain and crypto. It has already started moving outside the United States,” he added.
SEC’s conduct in Ripple case
Indeed, the SEC’s conduct in the ongoing lawsuit against Ripple has been questioned, with legal experts raising concerns regarding the agency’s intention to regulate the crypto space. In the lawsuit, the SEC argues that Ripple illegally sold securities in the form of XRP tokens.
At the moment, both parties are awaiting the summary judgment, expressing confidence in emerging victorious. The summary is speculated to occur by the end of March, but some experts have also pointed out there is the possibility of settling.
Both parties are also contesting over the unsealing of documents likely to offer a glimpse of how the regulator initially viewed the classification of securities with a particular interest in Bitcoin (BTC) and Ethereum (ETH).
XRP price analysis
With XRP being the token of contention, the case outcome will likely impact the asset’s price. A win for Ripple may be bullish for XRP and vice versa. By press time, XRP was trading at $0.37.
The sixth-ranked cryptocurrency by the market currently controls a market cap of $18.6 billion.
Watch the full interview below:
Featured image: Brad Garlinghouse’s Remarks At Ripple’s Q1 2020 Virtual All-Hands Meeting