Ripple CEO Brad Garlinghouse has criticized US regulators for their lack of clarity surrounding the cryptocurrency industry. Speaking to CNBC as part of the World Economic Forum in Davos, Garlinghouse argued that countries such as Switzerland, the UAE, the UK, and Singapore are taking the lead in crypto regulation, leaving the US behind. He also noted that this lack of clear regulation is causing confusion in the marketplace.
Garlinghouse’s harsh criticism of US regulators may not come as a surprise as Ripple has been embroiled in a legal battle with the Securities and Exchange Commission (SEC) since 2020. The SEC accused Ripple of conducting an unregistered securities offering of its cryptocurrency XRP to investors. The SEC alleges that Ripple raised over $1 billion through the sale of its digital token XRP and that the company and its executives personally profited from it. Ripple denies the allegations and is fighting the case in court.
Read more: The Components of a Functioning CBDC – XRP As the Global Bridge?
Despite the ongoing legal battle, Garlinghouse told CNBC that he’s optimistic the case will be decided on later this year.
Garlinghouse stated that “We have always said that we would love to settle, but it requires one very important thing, and that is that, on a go-forward basis, it’s clear that XRP is not a security.” He further added that the SEC Chairman Gary Gensler’s view on almost all crypto as security makes it hard for the parties to find a common ground for the settlement.
The case has attracted a lot of attention amoung the crypto community, as the outcome could have major implications for the regulation and classification of cryptocurrencies in the United States.