Ripple CEO Says SEC Has No Framework For A “Registered Token”• March 10, 2023 3:37 pm • Comments
Recently, Ripple CEO Brad Garlinghouse commented publicly about the fact that the SEC has no infrastructure for a “registered token” which means that the SEC essentially has no plan on how to manage tokens that are registered.
This makes the recent enforcement actions by the SEC appear very pointless as the agency does not provide a roadmap that allows tokens to continue to prosper and grow once they get registered.
As a result, such regulatory policy and unclear guidelines may eventually cause many crypto projects and companies to move outside the US.
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In addition to not supporting registered tokens, the actual definition of a registered token is also not clearly defined which makes the SEC’s recent actions very unpredictable.
At this point, many investors are skeptical about the industry as the SEC could come in at any time and start a litigation without notice.
Ripple (XRP) CEO Brad Garlinghouse said the United States Securities and Exchange Commission (SEC) has “no infrastructure for a “registered token” to trade nor provided any clarity” on what these tokens are.https://t.co/CI0uR13Tju
— Michael Branch (@Michael63140627) March 9, 2023
According to Garlinghouse, the SEC’s moves have declared war against the crypto industry. Recently, the regulator brought several enforcement actions against crypto firms that allegedly violated federal securities laws.
The Ripple chief highlighted the regulatory works in the European Union and questioned why the same was not happening in the US. He said:
“The 27 EU member countries can agree on a set of rules with MiCA… what’s stopping the US.”
The EU’s Markets in Crypto Assets (MiCA) framework would transform the region’s regulatory landscape to benefit the crypto industry.
The guideline is awaiting a final vote in April.
Meanwhile, Garlinghouse said firms operating in the US crypto industry must rebuild trust by enabling more transparency and creating utility. He said this was the “only way we collectively move forward.”
Garlinghouse noted that the failure of crypto firms like FTX and Terra had shattered the trust in the industry.
Garlinghouse also shared his thoughts on the current reputation of the crypto industry which has taken a hit due to the bankruptcies and the bear market.
The CEO compares the regulatory roadmap of the US to the current roadmap of the European Union and stated that it was an example of what the US should do,.
After all, the MiCA regulations are at least an effort to provide a comprehensive framework to regulate the crypto industry properly.
It will likely serve as a foundation of what many other regions in the world will do in the future, but it is still to be determined if the US will follow the same path.
Such progress will certainly be needed if the industry doesn’t want a repeat of the lawsuits that are happening right now such as the longstanding case between Ripple and the SEC.
The CEO of Ripple Labs has warned of the harm to the crypto industry if the U.S. Securities and Exchange Commission (SEC) is able to prevail in its lawsuit against Ripple over xrp. He cautioned that the SEC’s enforcemen… https://t.co/pUhD0TI6xu
— Investing Nomad | Teaching Trading Income (@investing_nomad) March 10, 2023
As reported by U.Today, Garlinghouse recently stated in an interview with Bloomberg that he expects a decision on the XRP lawsuit with the SEC to be made this year.
The Ripple CEO emphasized the importance of the lawsuit, which could have far-reaching impacts on the entire cryptocurrency industry, and criticized the SEC’s approach to crypto regulation.
He also stated that the case was not really about Ripple or XRP but rather how the SEC was attacking the entire industry.
The outcome of the lawsuit will set the stage for how crypto will be regulated in the U.S. and will be pivotal for the entire industry.
— XRP_Cro (@stedas) March 10, 2023
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