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Ripple CEO Criticizes SEC for Failed Mission to Protect Investors

CEO of the blockchain company Brad Garlinghouse gave a negative assessment of one of the aspects of the work of the U.S. Securities and Exchange Commission (SEC).

Ripple CEO Criticizes SEC for Failed Mission to Protect Investors

The head of this firm, during a conversation with media representatives during the Ripple Swell conference in Dubai, said that the said regulator, in his opinion, does not pay attention to one of its main tasks that determine its importance as an organization that is part of the structure of the authorities. Mr. Garlinghouse is convinced that the SEC has overlooked the mission of protecting investors. In the context of this statement, the head of the blockchain company also wondered concerning whom the regulator is currently fulfilling the relevant obligations.

In 2020, the SEC accused Ripple and its executives of involvement in the commission of fraudulent actions. The regulator stated that the blockchain company is related to securities fraud. The SEC claimed that the firm committed fraudulent actions by selling its own cryptocurrency XRP. The regulator stated that the blockchain company has not registered the current offer and sale of billions of digital assets. Because of this decision of the firm investors, as the SEC claimed, lost adequate disclosure of information about XRP and Ripple’s business.

In July, the company, headed by Brad Garlinghouse, won a landmark victory for the entire cryptocurrency industry in a dispute with the regulator. The judge ruled that XRP itself is not a security. After that, the SEC was being refused to file an interim appeal. In October, the regulator cleared Brad Garlinghouse and Ripple CEO Chris Larsen of involvement in actions that violate the provisions of the Securities Act.

In the framework of the said proceedings, another important stage is finding remedies. The SEC has 90 days, starting on November 9, to conduct an investigation related to the remedies, following the proposed schedule provided by the regulator.

Brad Garlinghouse, during a conversation with media representatives, described the result of the SEC proceedings as a positive step for the entire industry, and not only as an affirmative decision for the company he heads. He also stated that in this case, the most important circumstance is that the regulator was put under control in the United States. Separately, Mr. Garlinghouse expressed hope that this result will be the melting of permafrost. In this case, in a figurative and symbolic sense, it implies a change in the legal perception of sphere cryptocurrencies. The head of Ripple hopes that the mentioned industry, which has huge potential, will flourish in the space of the American economic system.

Also, Brad Garlinghouse expects that in the future the United States will overcome the current situation in which the regulation of cryptocurrencies is a process of constant litigation. He hopes that Congress will pass federal laws that will form the legal basis for the existence of the digital currency industry.

In the context of his arguments about the current forms of interaction between the American authorities and representatives of sphere cryptocurrencies, the head of Ripple said that one of the manifestations of insanity is to repeat the same actions, hoping to get a different result. He noted that the SEC is involved in the mentioned algorithm of activity. Brad Garlinghouse suggested that the regulator plans to get a different result at some point.

As we have reported earlier, Colombia’s Central Bank Chooses Ripple for CBDC Pilot.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.