The CEO of Ripple, Brad Garlinghouse, has warned that the US Securities and Exchange Commission’s (SEC) approach to regulation is putting the US at risk of missing out on being a global hub for the next evolution of blockchain and crypto innovation. In a recent Bloomberg interview, Garlinghouse suggested that the SEC’s enforcement-focused approach, as opposed to working collaboratively with the industry, is not a healthy way to regulate an industry.
Garlinghouse noted that the SEC’s case against Ripple is an example of the regulator simply playing “offense” and “attacking” the industry as a whole, rather than taking a constructive approach to regulation. He added that if the SEC is “able to prevail,” there will be “a lot of other cases.”
Garlinghouse argued that the crypto industry has “already started moving outside” of the US given its crypto regulation process is “behind” other countries such as Australia, UK, Japan, Singapore, and Switzerland. He commended these countries for taking “the time and thoughtfulness” to create “clear rules of the road,” and suggested that the US should follow suit in order to remain competitive.
Garlinghouse believes that the framework process should begin with outlining clear protections for consumers. He added that consumers are suffering from the “lag,” as they don’t have the “same protection” that the regulatory frameworks can provide.
Meanwhile, John Deaton, founder of legal news outlet Crypto Law Lawyer, recently put a call-to-action to his 245,000 Twitter followers, stating that all companies in “active litigation” with the SEC should collaborate and develop “coordinated strategies,” adding that it is “war.” This comes after Blockchain Association CEO, Kristin Smith, told Bloomberg in a Feb. 22 interview that the crypto regulation process in the US is happening “behind closed doors,” and that more industry involvement is vital in an “open process.”