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

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”

<