The United States Securities and Exchange Commission (SEC) regulation through “enforcement,” as opposed to “doing the work,” is not a “healthy way” to regulate an industry, and may result in the U.S being a less attractive place for crypto innovation, suggests Ripple’s CEO.
In a Mar. 3 Bloomberg interview, blockchain-based digital payment network Ripple’s CEO Brad Garlinghouse, suggested that the SEC’s approach to regulation is putting the U.S. at “severe risk” of not being a hub for the next evolution of blockchain and crypto innovation.
Garlinghouse noted that the regulator’s case against Ripple, is them simply playing “offense” and “attacking” the industry as a whole, adding that if the SEC is “able to prevail,” there will be “a lot of other cases.”
He suggested that the crypto industry has “already started moving outside” of the U.S., given its crypto regulation process is “behind” other countries such as “Australia, UK, Japan, Singapore and Switzerland.”
He added that these countries have “taken the time and thoughtfulness” to create “clear rules of the road,” adding that the approach taken by the U.S. is not a “healthy way to regulate an industry.”
Garlinghouse said when he “first got into the tech industry in the late 90s,” there were calls for the internet to be banned, due to “illicit activity,” but the government said “no, we’re going to create a framework.”
He said to “look at the benefits” that brought to the U.S. on a “geopolitical basis,” to have the “Amazon’s and Google’s,” based in the U.S.
Garlinghouse believes that crypto frameworks should start with “clear protections for consumers.”
He added that consumers are suffering from the “lag,” saying that they don’t have the “same protection” that the U.S. regulatory frameworks can provide.
Garlinghouse believes that a decision should come this year regarding the SEC’s case against Ripple.
Related: Ripple survey: 97% of payment firms believe in the power of crypto
John Deaton, founder of legal news outlet Crypto Law Lawyer put a call-to-action to his 245,000 twitter followers on Mar. 5 stating that all companies in “active litigation” with the SEC, should collaborate and develop “coordinated strategies,” adding that it is “war.”
We must think out of the and organize. For example, all companies in active litigation w/the SEC, or about to be, should be meeting, sharing ideas, and developing coordinated strategies. Its a war.
I’d be happy to help. Maybe I can replace @elonmusk as the SEC’s most hated.
— John E Deaton (@JohnEDeaton1) March 5, 2023
This comes after Blockchain Association CEO Kristin Smith told Bloomberg in a Feb. 22 interview that the crypto regulation process in the U.S. is happening “behind closed doors,” and it is vital for more industry involvement in an “open process,” involving Congress.