Ripple's CEO Brad Garlinghouse, speaking at the Swell conference in Dubai on Moday, criticized the U.S. Securities and Exchange Commission (SEC) for its regulatory approach, which he believes has lost sight of its investor protection mission. The comments come after a significant legal victory for Ripple earlier this year.
In December 2020, Ripple was hit with a lawsuit by the SEC for allegedly conducting a $1.3 billion securities fraud tied to its XRP sales. The case centered on whether XRP should be classified as a security under U.S. law—a classification that comes with stringent regulatory requirements. After a protracted legal battle, U.S. District Judge Analisa Torres ruled in July 2023 that XRP is not a security token, prompting the SEC to drop charges against Garlinghouse and fellow executive Chris Larsen in October.
Garlinghouse sees the outcome as a watershed moment for the crypto industry in the United States, paving the way for a more growth-oriented regulatory environment. He anticipates this will not only benefit Ripple but also catalyze broader industry expansion.
The Ripple CEO also discussed how the company has adapted its recruitment strategy due to the SEC's regulatory practices. In September 2023, during the Token2049 conference in Singapore, Garlinghouse revealed that Ripple would be hiring 80% of its workforce from countries with crypto-friendly regulations, underscoring his dissatisfaction with the U.S. approach.
At the Swell conference held on November 8-9, Garlinghouse shared his perspective on recent legal victories within the crypto space, such as Grayscale's success concerning a spot Bitcoin ETF. These developments, according to Garlinghouse, indicate a shift away from "litigation-driven regulation" towards more concrete federal laws governing digital currencies.
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