- Ripple CEO Brad Garlinghouse laments the lack of clear crypto regulations.
- Garlinghouse believes the lack of clarity is setting the US behind.
- Also, CNBC included Ripple in its CNBC Disruptor 50 list.
Ripple CEO, Brad Garlinghouse, shared his thoughts regarding the future of cryptocurrency and XRP. The CEO spoke up in a recent interview on CNBC’s Squawk Box.
Also, Garlinghouse shared his frustration towards the lack of clear crypto regulatory guidelines in the US. Currently, Ripple is fighting a legal battle against the US Securities Exchange Commission (SEC). On one hand, the SEC is accusing Ripple of illegally selling its XRP tokens for over $1.3 billion. The SEC argues that the sale was, in fact, an unlawful security offering.
On the other hand, Ripple maintains that cryptocurrencies are not securities. In Ripple’s defense, Garlinghouse noted that the US falls behind in comparison to its peers with regards to implementing clear crypto regulations. Garlinghouse said,
There’s a misunderstanding of how these technologies can be applied. In the United States, there has been a lack of regulatory clarity. Other countries, G20 markets, they have invested the time and energy, either through legislation or rulemaking, to provide that clarity and certainty, which allows investors to participate, entrepreneurs to build.
Currently, the SEC uses the 1946 Howey Test to determine what can be classified as a security. While the test provides a list of three criteria that make a security, the requirements are unclear for crypto application.
For instance, the SEC has ruled in the past that Bitcoin is not a security, however, this lawsuit implies that the rule is not consistent. In fact, the lack of clarity is one of the reasons why the SEC is yet to approve a crypto exchange-traded fund (ETF). In comparison, Canada approved its first Bitcoin ETF last year.
Notably, Ripple enhances cross-border payments, making them faster and cheaper. Also, the blockchain has several strong partnerships. For instance, Ripple recently signed a deal with the National Bank of Egypt and Lulu Exchange. The deal allows Ripple to facilitate remittances from the UAE to Egypt,
However, the lawsuit has negatively affected XRP price. While the altcoin has slipped down to the sixth highest-ranking crypto, XRP has held its ground against great odds. In fact, Ripple made it onto the CNBC Disruptor 50 list at number 38.
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