Ripple chief executive Brad Garlinghouse believes that the recent legal victories of his company over the U.S. Securities and Exchange Commission (SEC) could indicate a shift in the regulatory landscape for cryptocurrencies in the country. In an interview with CNBC, Garlinghouse argues that the SEC will need to reconsider its approach of using lawsuits to regulate the industry. He questions the SEC's mission to protect investors and wonders who they are truly safeguarding in this process. Garlinghouse sees Ripple's legal wins as a positive development for the entire crypto industry, as it puts the SEC in check. He expresses hope that this will lead to a more favorable environment for the thriving of the crypto industry in the United States, which has immense potential and is the largest economy in the world.
Last month, the SEC dropped its aiding and abetting charges against Garlinghouse and Ripple co-founder Chris Larsen. These charges were related to the SEC's lawsuit in 2020, which alleged that Ripple had issued XRP as an unregistered security. However, the courts ruled in July that the automated, open-market sales of XRP by Ripple did not constitute securities offerings.
In conclusion, Ripple's recent legal victories over the SEC could mark a turning point for the regulation of cryptocurrencies in the United States. Garlinghouse's belief that the SEC needs to change its tactics and focus on investor protection raises important questions about the agency's role in the industry. The dropping of charges against Garlinghouse and Larsen further strengthens Ripple's position. This development is significant not only for Ripple but also for the entire crypto industry, as it sets a precedent and creates a more favorable environment for innovation and growth.
