Ripple CEO Brad Garlinghouse has suggested that the lack of regulatory law around cryptocurrencies is responsible for the company being in trouble with the SEC. XRP was trading under $0.90 cents on Monday evening but is hardly alone in the red zone (for now, at least) as most coins have been affected by Bitcoin’s shocking dip.
Garlinghouse’s company has the looks of overcoming its legal troubles, having dealt a major blow to the SEC after a court ruled that the latter could not access internal communications between Ripple and legal service providers. There’s also talk of the company leaving the U.S and setting up shop elsewhere on the back of its issues in the country.
Garlinghouse took to social on Monday to offer a reaction to an article published by former SEC chairman Jay Clayton and former undersecretary of the Treasury Brent McIntosh in the Wall Street Journal calling for regulation as it pertains to digital assets.
“Innovation is rarely smooth or predictable,” an excerpt reads. “With a digital revolution under way in the financial services industry, a sector of the economy where the thirst for innovation and profit can never be quenched, there’s also a serious risk of both overregulation and underregulation. Policy makers would be wise to ground their efforts in the principal objectives underpinning existing financial regulations: financial stability, deep and efficient funding markets across the spectrum of debt and equity, and the prevention of fraud and illicit activity.”
Garlinghouse tweeted claims that the suggestions are ironic, however, “better late than never.” He also asserted that the lack of a clear, definitive framework has made it very difficult for companies seeking to be compliant, more so for Ripple.
“Cryptos, like nearly any new innovative technology, can be used for good or bad purposes,” he wrote. “The problem is that US companies seeking to be compliant and use this tech for good are left in limbo (or for Ripple, worse!) because of a lack of a clear, predictable framework.”
Regulations Could Be Put In Place Pretty Soon
The U.S Government is pretty keen on putting regulations in place. Last month, it was reported that the Biden Administration was exploring the implementation of “guardrails” for cryptocurrency, having sat through a number of meetings on the subject.
Former President Donald Trump, though, launched an outright assault on digital currencies this week when he referred to Bitcoin as a “scam” adding he isn’t a fan of the coin as it’s competing with the U.S dollar.