Brad Garlinghouse, the Ripple CEO is very concerned about the latest happenings in the cryptocurrency industry. He is unhappy about how some of the most influential figures in the crypto industry have acted against the crypto industry.
They may have tried to make a statement to gain respect among the US regulators but they have worsened things for the cryptocurrency industry.
Garlinghouse’s Take on the Matter
Ever since the start of 2023, Garlinghouse has been very vocal against the activities of the US SEC. He has continued criticizing the role of the US securities watchdog when it comes to handling cryptocurrencies.
He has criticized how the regulator has continued targeting the cryptocurrency projects claiming that they are unregistered securities.
Although the regulator has failed to prove that cryptocurrencies are securities, it has still continued with its onslaught against the industry.
Surprisingly, most of the crypto firms are intimidated by the regulator and they have resorted to not fighting against it. Unlike Ripple Labs, most of the firms have either done nothing or have settled with the regulator.
By doing so, they have only strengthened the footing and the stance of the regulator against cryptocurrencies. Its claims have also gained a lot of strength because almost none of the firms have stood up to it.
He quotes the recent case between the US SEC and Kraken, the major cryptocurrency exchange. The regulator had recently claimed that the exchange offered unregistered cryptocurrencies.
The regulator not only blamed the exchange for offering one unregistered crypto but almost a couple dozen cryptocurrencies.
Although Kraken is one of the oldest cryptocurrency exchanges in the market, it did nothing but resorted to settling with the regulator.
Even in the case of Kraken, the regulator claimed that it was involved in selling securities without getting them registered. However, the exchange did not even dispute or argue with the US SEC.
Instead, it proceeded with settling with the US SEC, paying a huge fine in the form of settlement. It reportedly paid over $20 million to the regulator in settlement and also suspended the staking of the particular tokens.
New Statement by Ripple’s CEO
Garlinghouse has just made another statement that involves Ripple Labs and the regulator. He has claimed that although they have been fighting with the regulator for a long time, it is still worth it.
They should not give up their position or stance against the regulator under any circumstances. It is very important that they do not give in to the tactics that the regulator has to throw at them to break their confidence.
According to him, if they end up giving in, things may become extremely alarming for the entire cryptocurrency industry.
The only outcome of their giving up would mean that they lose the case against the securities watchdog. It would only result in a catastrophe for the entire cryptocurrency industry.
The regulator wants to prove that XRP is a security, which Ripple Labs has continued denying. In its defense, Ripple Labs has quoted the recent communications by the former Chair of SEC, where he said that XRP was not a security.
Although Ripple Labs has provided the court and the jury with enough proof and evidence, the decision is still lingering.
Time after time, the crypto firms are losing cases against the regulator facing the same allegations. Instead of fighting with the regulator, they are resorting to giving up.
This is what is strengthening the claim made by regulators that cryptocurrencies are securities. If Ripple Labs loses the case, then the SEC may use their win to claim that every major crypto is secure.
However, in that case, it would be a default win for the US SEC against those firms. This could have a major negative impact on the entire cryptocurrency industry.
Therefore, he has requested all the firms facing lawsuits from the SEC of the same nature to react and challenge the regulator. A single win of any crypto firm against the SEC facing similar allegations would help the entire crypto industry.