Ripple’s Garlinghouse likens SEC to a alcoholic in denial after Gary Gensler speech

Rick Steves

“Trying to provide that clarity through enforcement action is not, I think, the right answer”

Brad Garlinghouse, Chief Executive Officer at Ripple, addressed the same public as SEC Chair Gary Gensler at the Aspen Security Forum.

His remarks were directed at the lack of clarity issues regarding the digital asset space in a time when he and his firm are fighting a lawsuit with the Securities and Exchange Commission on an alleged sale of unregistered securities.

Earlier this week, SEC Chair Gary Gensler stated “there’s actually a lot of clarity” in his speech. Yesterday, Mr. Garlinghouse took the opportunity to say otherwise.

“In my judgment, if you’re dealing with an alcoholic that doesn’t want to admit they have an alcohol problem, to say that we have certainty, we have clarity, is like the alcoholic saying ‘I don’t have a problem’. This is the elephant in the room.”

SEC v. Ripple: XRP is not subject to SEC under pending bill, said attorney Thien-Vu Hogan

The Ripple chief executive then explained the frustration his firm and others in the space have experienced on account of the lack of regulatory initiative.

“For years I think the crypto industry has asked for that clarity, and yesterday we heard ‘it is clear’. Yet a few weeks ago we had two (SEC) Commissioners Peirce and Roisman saying (in) a letter, I’ll quote, they said “a decided lack of clarity for market participants around the application of the securities laws to digital assets and their trading.’”

“We can’t keep saying it is clear and then trying to make it clear through enforcement. You see other G20 markets like the UK, like Japan, like Switzerland, like Singapore who have been proactive and engaged. And that has helped these markets thrive in those countries. If the U.S. wants to be a leader in this space, then we need to provide that clarity and not act like there is clarity.”

As to why doesn’t the company move outside the United States, Mr. Garlinghouse said Ripple already has, to some degree. The blockchain specialist has been expanding its footprint the Asia Pacific. The firm has recently announced the go-live of its On Demand Liquidity (ODL) product in Japan.

“Being a company based here in the United States, I want to see the United States thrive in this area. I want to work with the U.S. government to provide the clarity, to provide the certainty. But trying to provide that clarity through enforcement action is not, I think, the right answer”, he said, adding that the firm is not willing to fully give up on the United States yet.

Read this next

Digital Assets

Russia could use cryptocurrency in international payments as sanctions intensify

Faced with stiffening sanctions over its invasion of Ukraine, Russia is reportedly mulling the idea of accepting Bitcoin or other cryptocurrencies as payment for its international trade. Interfax news agency first reported the news on Friday, citing a high-ranking government official.

Digital Assets

Huobi buys crypto exchange Bitex to expand in Latin America

Huobi, the world’s sixth-largest crypto exchange by trading volume, has bolstered its commitment to Latin America with the acquisition of Bitex.

Digital Assets

US Senate to ban Google, Apple app stores from hosting China’s e-CNY

The US Senate could pass new legislation to ban hosting China’s e-CNY – also known as the digital yuan – by US app stores like Apple store, Google Play, and other providers.

Institutional FX

Takeprofit Tech adds Gate.io, GCEX and others to Liquidity Hub

Fintech software developer Takeprofit Tech has onboarded Gate.io, MFP Trading, Velocity Trade and GCEX to its liquidity hub solution network.

Digital Assets

Bosonic launches clearing and settlement solution for digital assets

Bosonic launched a clearing and settlement capability which provides a turnkey digital asset infrastructure platform that can be used by market operators to run their own trading venue or digital asset post-trade service.

Metaverse Gaming NFT

Immersive technologies: How VR technologies can boost our well-being

Neuro-biologists have already proven that the human brain can’t tell the initial difference between reality and deep fantasies. It works for both dreams and daydreaming. In other words, if our brain perceives something as real, we react to it as if it was true. That is why emotions we get in the skillfully-built immersive reality can be a substitute to those we get in real life. 

Digital Assets

LevelField taps METACO’s digital asset custody platform ahead of US bank charter

LevelField is comprised of career bankers who deeply understand the importance of compliance and security.

Digital Assets

JPMorgan Chase invests in crypto forensics startup Elliptic

Multinational investment bank JPMorgan Chase & Co has joined the Series C funding round for Blockchain forensics startup Elliptic, the latest sign of how major banks are warming to cryptocurrencies.

Digital Assets

Alex Iakobachvili parts ways with B2Broker to join GCEX

GCEX, a digital asset and FX technology platform for institutional and professional clients, has appointed Alex Iakobachvili to the role of Vice President of Business Development.

<