Ripple’s CEO believes that the US SEC is holding back on Ripple’s potential and expressed his concerns over the lack of regulatory clarity from the agency so let’s find out more in the latest Ripple news.
Brad Garlinghouse, Ripple’s CEO believes that his platform has a much bigger potential which is crushed by the US Securities and Exchange Commission. He and Chris Larsen expressed a desire to leave the states because of the unfavorable conditions. Most recently, he noted that almost nothing has changed in the US and in absence of clear SEC guidance, the investors are extremely cautious over investing in XRP. Using the example of the growth of the Internet, Garlinghouse said that during the heavy period of internet development, a clear regulatory framework paved the way for internet companies to dominate and grow endlessly:
“We certainly saw that in the age of the internet, twenty plus years ago, the U.S. had a clear regulatory framework. That allowed investors to come in and make those investments.”
Now, in the case of crypto, it’s the regulators that are encouraging growth via clear regulatory rules. Garlinghouse thinks that without regulatory clarity, the US crypto industry will lose ground. Also, he is frustrated that XRP faces many challenges that don’t apply to Ethereum or Bitcoin. Back in 2018, the SEC director William Hinman spoke during the Yahoo Finance All Markets Summit and declared that both ETH and BTC Are not securities. He referenced a few key points that had to do with the Howey test and said:
“But this also points the way to when a digital asset transaction may no longer represent a security offering. If the network on which the token or coin is to function is sufficiently decentralized – where purchasers would no longer reasonably expect a person or group to carry out essential managerial or entrepreneurial efforts – the assets may not represent an investment contract.”
As things stand right now, the SEC failed to deliver a verdict on whether XRP is a security. Garlinghouse said on that matter that investors are afraid to join because of regulatory uncertainty. This is not the case with the overseas markets where the regulators are boosting crypto development:
“Today, here in the United States we’re actually out of step with some of the other G20 markets around the world. In the U.K., or in Singapore, or in Japan, you have had that regulatory clarity.”
He said that about 95% of the Ripple customers are non-US and said that the company has strong potential in the US but the users there are waiting on the SEC to make the call.
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