- Ripple CEO calls for modern regulations that align with digital assets’ unique nature.
- FIT21 bill shifts crypto regulation from SEC to CFTC under Trump’s agenda.
As a seasoned financial analyst with over two decades of experience navigating the ever-changing regulatory landscape, I find myself empathizing deeply with Brad Garlinghouse’s call for modern regulations that align with digital assets’ unique nature.
The ongoing dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) remains a hot topic, as new allegations fuel more discussions on the matter.
In the midst of continuous disagreements, whispers have emerged suggesting that the crypto sector’s spending on legal protections is relatively lower than the losses investors experienced due to scams and market collapses.
In response to these ongoing debates, Ripple’s CEO, Brad Garlinghouse, has offered his viewpoint on the topic.
In a recent interview on ’60 Minutes’ that aired on the 8th of December, Garlinghouse shared his thoughts about the company’s persistent struggle with the regulatory body.
Indeed, as anticipated, Garlinghouse didn’t mince words when criticizing the SEC. He suggested that the agency’s tough approach towards cryptocurrencies could be a result of its previous management under Gary Gensler.
60 Minutes interview with Ripple’s CEO
In the 60 Minutes interview, he emphasized that this factor played a significant role in the creation of FairShake – a political action committee (PAC) within the industry, co-founded by Ripple and two other companies. This was primarily to confront what he referred to as a “crypto war.
In other words, Garlinghouse openly stated that Ripple has already invested more than $150 million in their ongoing legal battle against the SEC’s decision to classify XRP as a security.
He emphasized that Ripple is not advocating for deregulation but is instead urging Congress to establish clear and distinct rules that recognize the unique characteristics of digital assets, rather than treating them like traditional stocks.
He added,
I attended Harvard Business School and I believe I have a decent understanding of financial concepts like ‘security’. It had never occurred to me that XRP might fall under this category. However, instead of avoiding regulation, we’ve consistently advocated for it. Our plea is simple: provide us with clear guidelines to navigate the market.
Additionally, he highlighted that the current regulations governing securities are antiquated and struggle to adapt to the intricacies of advanced blockchain systems.
In essence, Garlinghouse emphasized to Congress the importance of creating custom regulatory guidelines for digital assets. He emphasized the necessity of regulations that correspond with the distinct characteristics of these innovative technologies.
He added,
We’re not requesting to be exempted from regulations, we’re requesting for them instead. What we want is clear guidelines to follow.
How will the CFTC help smoothen crypto regulation?
Additionally, Garlinghouse mentioned the FIT21 bill, a groundbreaking law supported by both parties that had a substantial influence on the cryptocurrency sector.
The bill significantly changed how regulations are enforced, transferring a large portion of the cryptocurrency oversight duties from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). This move was in line with President Donald Trump’s supportive stance towards cryptocurrencies.
As reported by FOX Business, the Trump administration aims to grant the Commodity Futures Trading Commission (CFTC) expanded control over the $3 trillion digital asset sector, while the Securities and Exchange Commission (SEC) continues to play a role as well.
Without a doubt, during Garlinghouse’s defense, the price of XRP saw a significant jump, approaching nearly $2.60.
Currently, according to the most recent information from CoinMarketCap, XRP closed at approximately $2.42. This represents a decrease of about 5.4% within the last 24 hours.
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2024-12-09 14:48