Ripple CEO blasts the SEC on one-year anniversary of lawsuit
The head of Ripple, Brad Garlinghouse, took to Twitter to criticize the SEC for not taking action after a year of litigation. He also shared his thoughts on what he feels are faults in current regulatory policy which have prevented blockchain projects from flourishing.
The “xrp vs sec” is a cryptocurrency that has seen its price skyrocket in the past year. On the one-year anniversary of their lawsuit, the CEO of Ripple blasted the SEC and stated that they are not doing enough to protect investors.
On Wednesday a year ago, the SEC filed a lawsuit against Ripple for selling unregistered securities.
With that, Ripple CEO Brad Garlinghouse felt it was only right to respond with a tweetstorm of his own. In conclusion, he said that the lawsuit against his company was an assault on the whole cryptocurrency sector.
“Of all the naughty things that happened in 2020, this was definitely one to end the year on.” But what I argued back then is still (painfully) true today: this is a crypto assault in the United States, not just on Ripple. Some accepted the SEC’s charges at face value and assumed it was a one-time occurrence, but that is no longer the case.”
During the pre-trial discovery process, both sides have exchanged blows. However, based on what has been revealed so far, the popular perception is that the litigation has backfired on the securities regulator.
As 2021 progressed, Garlinghouse’s “assault on crypto” claim, initially expressed in a blog post in reaction to the SEC case filing, has been justified to some extent.
Coinbase’s effort to offer its “Lend” staking product is likely the best illustration of this. CEO Brian Armstrong claimed he was threatened with legal action and denied an answer when he informed the SEC about Lend.
SEC Chair Gary Gensler responded by saying that exchanges like Coinbase should “come in and speak to us.”
If one takes the SEC’s statements at their value, one may conclude that the SEC wants crypto to fail. Or, at the at least, be significantly hampered to the point where it provides no meaningful advantage.
Gensler has been accused of taking an anti-crypto stance.
Many hoped that Gensler’s expertise in teaching blockchain would convert into a pro-crypto stance at the SEC after his appointment in April.
During Ripple’s tweetstorm, though, Gensler was chastised for having a “anti-crypto posture.” Garlinghouse said that if this trend continues, the United States would slip far behind other countries as Web3 development accelerates.
“Which returns me to the SEC.” As Chair @GaryGensler tries to broaden the organization’s jurisdiction, he has adopted a stridently anti-crypto stance, and corporations are already relocating outside of the United States. Web2 was created in collaboration with a number of American businesses, but what about Web3 (or whatever we want to name it)? TBD!”
Ripple continues to fight.
Despite the issues that have arisen since the filing, Garlinghouse is keen to point out that 2021 has been Ripple’s “best year” to yet.
He claims that On-Demand Liquidity (ODL) transactions, which account for a quarter of RippleNet activity, are increasing 25 times since the start of legal action in Q3 2020. And it’s growing 130 percent year over year.
Furthermore, ODL is growing worldwide, with additional On-Demand corridors opening in Japan and the United Arab Emirates. Ripple’s CBDC work with Bhutan and Palau was also discussed by Garlinghouse.
Before signing off, the Ripple CEO urged crypto users to contact their congressional representatives and express their dissatisfaction with the lack of regulatory certainty.
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