Ripple CEO Reveals He Visited The SEC Multiple Times Before Lawsuit Came Out

May 23, 2022 3:40 pm

Ripple CEO Brad Garlinghouse just revealed that he had actually visited the SEC multiple times even before the SEC brought the lawsuit against XRP.

Garlinghouse shared this new information at the World Economic Forum in Davos this year as he was speaking about the current status of crypto regulation within the United States.

The key point that was made is that the rules and regulations currently do not have the clarity that the industry needs which is huge obstacle that makes it difficult for crypto businesses to operate.

Given that Garlinghouse had visited the SEC 4 or 5 times before the lawsuit was initiated, it indicates that the move was definitely a surprise to many as one would assume that XRP would be in the clear.

After all, other digital assets like Bitcoin and Ethereum have not been declared securities by the SEC which raises the question of why XRP is being treated differently.

CoinTelegraph reports:

“The overwhelming majority of people working within the crypto industry are good actors that want to do right by regulators. But when the rules of the road aren’t clear, it’s very difficult to manage within that.”

Later in the conversation, Garlinghouse revealed that he personally went to the U.S. Securities and Exchange Commission (SEC) office “four or five times in the years leading up to their decision to file a lawsuit,” stating that there is no justification for why the Ripple-associated asset XRP should be legally categorized as a security.

“It demonstrates how out-of-step the United States is with the G20”, Garlinghouse argued, citing Switzerland, Singapore, the United Kingdom and Japan as nations that have more favorable regulatory environments for cultivating technological innovation.

As expected, the regulatory environment at the economic summit was also compared with the regulatory environment of many other regions within the world.

The consensus seems to be that the United States is lagging behind other countries such as Switzerland, United Kingdom, and Japan in this area.

As a result, Ripple has been able to continue expanding its network and services on an international level despite the roadblock that has been presented by the SEC lawsuit.

Business2Community reports:

The SEC filed a lawsuit against Ripple last year. The lawsuit said that Ripple executives had engaged in a sale of unregistered securities and that XRP functioned as a token and not a security. The lawsuit has been ongoing for a year, without signs that either of the involved parties will agree on a settlement.

The SEC has been reluctant to approve a spot Bitcoin exchange-traded fund (ETF). The commission approved a futures-based ETF in October last year, causing BTC price to reach an all-time high of $69,000.

Recently, the chair of the SEC, Gary Gensler, said that very few assets in the market could be classified as tokens.

Gensler said that assets like Bitcoin were commodities and would be regulated by the Commodity Futures Trading Commission (CFTC), while others fell under the regulatory scope of the commission.

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