Ripple CEO Brad Garlinghouse expressed concerns about the US Securities and Exchange Commission's (SEC) approach to cryptocurrency regulation, suggesting that the agency has overlooked its mission of protecting investors.
Speaking at the Ripple Swell event in Dubai, Garlinghouse questioned who the SEC is protecting in its regulatory work.
In July, Ripple scored a significant victory when a judge ruled that XRP was not a security. This decision was an important step in the ongoing litigation between Ripple and the SEC. The next phase of the case is a resolution discovery process, which the SEC must conduct within 90 days starting Nov. 9, on a schedule proposed by the agency.
Garlinghouse expressed hope that the US will move beyond a situation where crypto regulations are dictated through litigation. Instead, the Ripple CEO hopes to see federal legislation governing digital currencies passed by Congress. He believes this will be a positive step not only for Ripple but for the entire industry.
Ripple CEO also criticized the SEC for its repetitive actions, likening it to the definition of insanity: doing the same thing over and over again and expecting a different result.
He cited a recent victory for digital asset manager Grayscale in the US, where a judge ruled that the SEC was wrong to reject the company's application to create a spot Bitcoin ETF.
Garlinghouse concluded by suggesting that the SEC should reconsider its approach to regulation through enforcement and litigation. The CEO believes that the organization needs to step back and realize that this approach needs to change.
*This is not investment advice.