Brad Garlinghouse shared his opinion on the partial ability of the US SEC agency over crypto token companies that are registered or seeking to be registered with this body.
Brad Garlinghouse is the CEO of the Ripple company. Ripple is a San Francisco-based fintech company and Ripple labs is the engineering team behind XRP ledger (XRPL), a Proof-of-stake (PoS) consensus-based crypto network. Ripple provides cross-border payments with the use of XRP, a native token of the XRPL.
On 7 March 2023, Ripple’s CEO said that in the past the United States Securities and Exchange Commission (SEC) severally urged crypto companies to get registered with the body on behalf of the nature of their token service or business.
Ripple CEO noted that the SEC body cannot regulate the crypto firms because it has no framework for the registered tokens. In short, the SEC is failing to explain the nature of registered tokens also.
Further, Garlinghouse noted that EU-like countries are doing well in cryptocurrency regulation but in the US these things are not happening.
A crypto Twitter user responded to this discussion and said that the crypto industry also needs similar respect as the stock market has in the world.
Ripple vs SEC
Since Dec 2020, Ripple & the SEC body has been in a legal fight over the nature of the XRP token.
According to the SEC agency, the XRP token is unregistered security and Ripple labs & Its executives violated Federal securities law because they sold more than $1.3 billion worth of unregistered securities.
Over the past two years, Ripple executives never missed any chance to criticize the SEC body, as both of these two entities are enemies of each other.