Brad Garlinghouse, CEO of Ripple, has addressed some of the allegations made by the US Securities and Exchange Commission against his company. He focused on answering five questions about what he calls the regulator’s “unproven allegations”.
Garlinghouse says there is “regulatory chaos” in the US
In a Twitter thread on his official profile, Garlinghouse claimed the blockchain company had “tried” to come to terms with the US SEC. He added that the company would try again with the new administration but refused to go into details.
In response to the crypto exchanges that XRP is listed on, Garlinghouse said the company “has no control” over where the token is listed. “It’s open source and decentralized,” the Ripple manager claimed.
However, the CEO discussed in depth the question of when XRP will be listed again on exchanges on which the token was delisted. Referring to the Digital Commodity Exchange Act (DCEA), he described:
With [eight] US market participants face different government policies, each with their own (and sometimes conflicting) views on crypto. You are faced with conflicting guidelines, and it is no surprise that some act conservatively. We have moved from a lack of regulatory clarity to regulatory chaos in the US. That is why regulation by enforcement is such a bad public policy. With the new administration, we expect the reintroduction of DCEA – sensible legislation that provides clarity for the entire industry.
The first response from Ripple will be submitted in the next few weeks
On January 7, 2020, Stuart Alderoty, General Counsel at Ripple Inc., pointed out that legal processes take time. Garlinghouse commented:
Things may seem calm, but there’s a lot going on behind the scenes. We’ll get our first response in within weeks.
Ripple’s CEO also acknowledged that the company was incentivizing “some customers, particularly first movers,” to use its on-demand liquidity (ODL) services. He went on to claim that companies like Paypal, Visa and Mastercard are “still” using incentives.
In late 2020, Ripple hit back with the SEC, accusing the agency of creating more uncertainty due to the “dangerous lack of regulatory clarity for crypto in the US” with unrelated Ripple holders. “According to Markets.Bitcoin.com, XRP is trading hands at $ 0.3222, with a market cap of $ 14.65 billion at press time.
Do you agree with Garlinghouse? Let us know in the comments below.
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