With the crypto market in constant flux in the US following the SEC’s continued pressure on various cryptocurrencies, many have cause for concern over the style of regulation that is happening.
More specifically, the US continues to turn a blind eye to the obvious overreaching of power with how different types of cryptocurrencies are taken to court. Many executives of different crypto firms have started to speak out about how the US is failing the crypto community.
As the SEC continues to have free reign over taking the different crypto companies to court and making things much more difficult with them.
Not only does it continue to make the process of trading much less intuitive for traders, but they are quick down on new features from companies.
One of the biggest examples of this happens to be with Kraken, which put out a staking service for all of its traders to take advantage of. However, soon after its release, the SEC was quick to clamp down on it, and it succeeded in shutting down the service.
By taking the company to court, not only did it have to plead guilty and pay the $30 million fine, but it was also forced to ensure the court that it would not try to launch a service like that again.
Ripple CEO Gives Comments on State of US Crypto Regulation
Ripple CEO Brad Garlinghouse has talked at length about the state of regulation around the world and in the US.
Even though he is very excited to see how the state of regulation tends to develop following the different types of crypto companies worldwide, in an interview with a major publication, he also called these different regulation attempts energizing the crypto space.
Despite having positive things to say about crypto regulation globally, Garlinghouse does not have anything nice to say about the state of regulation in the US specifically.
As the US congress continues to ignore the overreach of power by the SEC, there continue to be instances where a company could have been given a chance to remove a certain service without having to go to court.
Ripple is a company that has been crossing swords with the SEC for quite some time, as the company was taken to court over offering securities to their traders without declaring them first.
According to official reports, the SEC was classifying the different cryptocurrencies that it offers as securities. After a long legal battle, the judge decided in favor of the crypto company ripple, declaring that cryptocurrencies are indeed not securities.
Understanding the Need for Crypto Regulation
Garlinghouse is a major supporter of regulation in the crypto market, as he understands the effects of a crypto community gone completely loose.
The rampant scams and instances of individuals taking advantage of other traders is a serious issue that continues to prevail in the grand scheme of the market. However, one thing that he is not a fan of is the regulatory board taking advantage of its powers.
Even if the SEC insists that the decisions that it is making are for the betterment of its traders, that does not happen to permeate through with its actions.
By regulating the entire market by exclusively enforcing it, they will only alienate crypto companies and will drive traders into the hands of scam crypto companies.
Other Countries Manage to Do it better
The CEO of ripple was also quick to point out that there are other countries that manage to regulate their respective crypto markets with more nuance than the US.
This is the only issue that comes with regulating, as countries like the UK, Brazil, South Korea, the UAE, and Australia all properly regulate their crypto markets without making it difficult to operate there.
One of the reasons why they are able to regulate better is because they are sitting down with companies to decide on a policy that benefits them and their consumers.