Ripple CEO Brad Garlinghouse spoke about the lack of clarity in U.S. regulation of cryptocurrencies as “frustrating.” It is known for the cryptocurrency XRP, the fintech company that has been caught in a high-stakes legal tussle with the U.S. Securities and Exchange Commission from the last year.
In December, the SEC filed charges against the firm, Garlinghouse and a Ripple co-founder, alleging they have gained more than $1.3 billion through an unregistered securities offering.
Garlinghouse mentioned that the U.S. has yet to deliver clear regulatory guidelines for cryptocurrencies different from other countries in Asia.
On Friday, he said to the CNBC channel that “I give credit to markets like Singapore and even parts of Korea where there really has been a thoughtful government-led effort to define and have clear regulatory frameworks around cryptocurrencies.” He even added that the company’s ongoing legal battle with the SEC was an example of where the regulatory framework remained unclear.
He also noted “Ironically, here in the United States they have not provided that same clarity. It is the only country on the planet that has said XRP is anything other than a currency. The SEC has said… XRP is a security. And so we’re now engaged in a court discussion. So far, I feel good about how that’s been going, but it’s certainly frustrating.”
As per the complaint filed in the month of December, the SEC mentioned that Ripple “created an information vacuum” when it did not reveal the offering to investors. The agency debates about the company’s requirement to share this kind of material info with investors because XRP can be measured as an investment contract “under certain circumstances” and “therefore a security under the federal securities laws.”
Financial regulators globally are watching into how they should control the cryptocurrency industry.
Garlinghouse restrained the current scrutiny of cryptocurrencies, saying the industry should continue to focus on what these technologies provide to customers.
“I think at the end of the day, the industry should focus on utility. And are these technologies solving real problems for real customers,” he said, adding that Ripple will continue to leverage its XRP ledger and tokens to make payments efficient.