Ripple CEO Brad Garlinghouse has warned of negative consequences for the entire cryptocurrency industry if the US Securities and Exchange Commission (SEC) wins the lawsuit against the payments company.
In a new Bloomberg interview, Garlinghouse He says That if the SEC prevails in the lawsuit alleging that XRP represents a security, this finding will have implications for the entire crypto industry.
“The SEC filing the lawsuit against Ripple wasn’t really just a case about Ripple or about XRP. It’s really about the industry and how the SEC is playing the game and attacking the entire industry. Two and a half years ago when I started, I’m not sure Everyone got it right, and now it’s widely understood.
This will be pivotal for the entire industry because if the SEC can prevail, I think there are a lot more cases and some just in the last four weeks: I think they’ve filed five additional enforcement cases.”
According to the CEO of Ripple, the way the SEC regulates the cryptocurrency industry in the United States is “not healthy.”
“The overall headline to me is this is not a healthy way to regulate the industry. Regulation through enforcement is unlike what we see in other countries where they do business — they codify, and they create a framework that allows the industry to grow while protecting consumers.”
Garlinghouse says that regulatory uncertainty in the US will negatively affect the world’s largest economy.
“Look at the benefits to the US on a geopolitical basis of having Amazon and Google based in the US.
I think we run a very high risk that this will not happen in this next development of technology around blockchain and crypto. It has already started moving outside of the United States.
And consumers suffer because of it. Because you don’t have the same protections that US regulatory frameworks can provide.”
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