The legal standoff between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) remains a topic of significant interest, with new allegations sparking further discussions.
There have been rumors suggesting that the cryptocurrency industry’s spending on legal defenses is comparatively lower than the losses suffered by investors due to frauds and market failures.
In response to these controversies, Brad Garlinghouse, the CEO of Ripple [XRP], recently shared his views on the matter.
During a segment on ’60 Minutes’ that aired on the 8th of December, Garlinghouse provided insights into the company’s ongoing struggles against the regulatory body.
As anticipated, Garlinghouse openly criticized the SEC, linking the agency’s aggressive stance on digital currencies to its former leadership under Gary Gensler.
Insights from Ripple’s CEO on ’60 Minutes’
During the interview on ’60 Minutes’, he highlighted this issue as a key reason behind the establishment of FairShake, a super PAC in the industry formed by Ripple and two other firms to counter what he described as a “crypto war.”
Garlinghouse revealed that Ripple has already spent more than $150 million in its current legal battle to challenge the SEC’s classification of XRP as a security.
He stressed that Ripple is not advocating for deregulation but is instead urging Congress to set out clear and specific guidelines that acknowledge the distinctive features of digital assets, rather than treating them akin to traditional stocks.
He stated,
“I attended Harvard Business School. I consider myself reasonably knowledgeable about topics like ‘What is a security?’ So, it never crossed my mind that maybe XRP could be considered a security. We’re not seeking deregulation. We’re seeking regulation. We’re saying – hey, provide us with clear regulatory guidelines.”
He further highlighted that the existing securities regulations are outdated and insufficient to address the complexities of modern blockchain technology.
That said, Garlinghouse urged Congress to create new regulatory frameworks tailored to digital assets, emphasizing the necessity of rules that align with the unique characteristics of these emerging technologies.
He added,
“We’re not pushing for deregulation. We’re pushing for regulation. Our aim is simply to have clear regulatory frameworks in place.”
Impact of CFTC on Crypto Regulation
Garlinghouse also mentioned the FIT21 bill, a significant bipartisan legislation that has greatly influenced the crypto sector.
This bill restructured regulatory oversight, transferring a substantial portion of cryptocurrency regulation responsibilities from the SEC to the CFTC, aligning with former President Donald Trump’s pro-crypto agenda.
According to FOX Business, the Trump administration aims to grant the CFTC with enhanced authority over the $3 trillion digital asset market while keeping the SEC involved.
Following Garlinghouse’s defense, XRP experienced a notable price increase, reaching nearly $2.60.
However, as per the latest update from CoinMarketCap, XRP is now trading at $2.42, indicating a 5.4% drop in the previous 24 hours.