The CEO of Ripple Labs, Brad Garlinghouse says that the lack of clarity in the U.S. regulation of crypto is “frustrating.” According to him, regulatory certainty is required so that investors can make better decisions.
Lack of Crypto Regulatory Clarity in the United States is Frustrating: CEO Garlinghouse
In a recent interview with CNBC, the CEO of Ripple Labs Brad Garlinghouse describes the United States’ lack of regulatory clarity as “frustrating.”
He said certainty is required so that investors can make better decisions while praising certain Asian markets for having clear cut regulation guidelines:
“I give credit to markets like Singapore and even parts of Korea where there really has been a thoughtful government-led effort to define and have clear regulatory frameworks around cryptocurrencies.”
He cited the company’s ongoing legal battle with the SEC as an example of where the regulatory framework remains unclear, even adding that the United States is the only country that considers XRP not a cryptocurrency:
“Ironically, here in the United States, they have not provided that same clarity. It is the only country on the planet that has said XRP is anything other than a currency. The SEC has said XRP is a security. And so we’re now engaged in a court discussion. For far, I feel good about how that’s been going, but it’s certainly frustrating.”
Ripple Labs Considers XRP Not a Cryptocurrency
In a complaint filed in December 2020, the U.S. SEC said that Ripple “created an information vacuum” when it did not disclose the offering to investors.
According to the SEC, Ripple was required to share this kind of material information with investors as XRP can be considered an investment contract “under certain circumstances” and “therefore a security under the federal securities laws.”
In December, the U.S. SEC had filed charges against the firm including Garlinghouse and co-founder Chris Larsen for illegally raised more than $1.3 billion through an unregistered securities offering. XRP token, according to the SEC, is a security and not a cryptocurrency.
Meanwhile, the regulatory watchdog had previously asked the court to ban XRP’s circulation, forcing the company to return the profit received, and to pay an additional fine. This resulted in many cryptocurrency exchanges removing the token from trading.