Ripple CEO, Brad Garlinhouse, said that the lack of clarity in the US regulation of cryptocurrency is much “frustrating.”
Well-known for the cryptocurrency XRP, the fintech company is caught in a higher level of stakes legal issues with the US Securities and Exchange Commission from last year.
In December, the SEC filed charges against the firm, Garlinghouse, and on Ripple’s co-founder. It alleged that they had been raising more than $1.3 billion via unregistered security offerings.
Garlinghouse said that the US is yet to provide many clear regulatory guidelines on cryptocurrencies.
He appreciated the markets like Singapore and many parts of Korea where there is a much thoughtful Government. The government in such countries is leading with an effort to define and provide a clear regulatory framework on cryptocurrencies. He quoted that the ongoing legal battle of the company with the SEC as an instance of where regulatory frameworks are remaining still unclear.
“Ironically, here in the United States, they have not provided that same clarity. It is the only country on the planet that has said XRP is anything other than a currency,” he said. “The SEC has said… XRP is a security. And so we’re now engaged in a court discussion. So far, I feel good about how that’s been going, but it’s certainly frustrating,” he continued.
In a complaint filed in December, the SEC said Ripple had produced an information vacuum. However, it did not disclose the offerings of the investors. The agency argues saying that a company must share this kind of material information with its investors as XRP is supposed to be considered an investment contract under particular situations. And also, it can be thought-about to be a security under federal securities and laws.
Financial regulators globally are thinking of how they should regulate the industry of cryptocurrency. Garlinghouse opted for the downplaying of the current scrutiny of cryptocurrencies with the opinion that the industry must focus on the contribution of such technologies to the customers.
“I think at the end of the day, the industry should focus on utility. And are these technologies solving real problems for real customers,” he said while adding the fact that Ripple must continue to benefit its XRP ledger and tokens to make payments highly effective.