Ripple CEO Brad Garlinghouse criticized the Securities and Exchange Commission’s (SEC) regulatory approach, addressing it as a “war on crypto.” In his 60 Minutes interview, aired on December 8, 2024, Garlinghouse asserted that the super PAC, FairShake, was formed to fight against the SEC’s anti-crypto stance. He reiterated his demand for clear regulations in the crypto space, urging Congress to establish a comprehensive framework.
Emphasizing the protracted Ripple-SEC lawsuit, Garlinghouse stated that he hadn’t considered the XRP token as a security. He posited that XRP should not be treated like a stock and should be exempted from similar registration and disclosure requirements. He added that the securities laws enforced by the SEC are outdated, highlighting the necessity of introducing updated and convenient guidelines. His words echoed,
I went to Harvard Business School. I think I’m reasonably intelligent about something like, “What is a security?” So never once had I considered the possibility– that, “Okay, maybe XRP’s a security. We haven’t been asking to be deregulated. We’ve been asking to be regulated. So we have been saying, “Hey, look, just give us clear rules of the road.
Further, slamming the SEC Chair Gary Gensler, who is expected to step down on January 20, 2025, Garlinghouse stated that the FairShake PAC would not have been created if Gensler wasn’t at the helm of the regulatory agency. His statement highlights the community’s excitement about welcoming Paul Atkins as the new chair. Hailing the 2024 US election as a major victory for the crypto industry, he stated, “We educated voters, as many industries do, about candidates.”
XRP’s Bullish Trend: Can It Break Through $4 Soon?An SEC spokesperson commented that the money spent by the crypto industry on legal fees and lobbying is insignificant compared to the massive losses incurred by investors in scams and frauds. In response, Garlinghouse pointed out that Ripple has spent over $150 million to fight the SEC’s stance on XRP. In addition, Ripple remains one of the largest contributors to the FairShake PAC that intended to overthrow the anti-crypto army under Joe Biden.
Before the US election, Ripple spent almost $45 million on the PAC to attract the voters to elect crypto-friendly candidates. Other major contributors included Coinbase, Jump Crypto, and Andreessen Horowitz. In a November 26 post, Garlinghouse stated that he would add another $25 million to the PAC to urge the public to elect “pro-crypto, pro-growth and pro-innovation candidates” in future elections.
Recently, the US House Committee on Financial Services passed the Financial Innovation and Technology for the 21st Century Act (FIT21) with bipartisan support. The bill is a legislative plan to clarify the role of different regulatory agencies, including the SEC and the CFTC, in overseeing the crypto industry. As the industry is anticipating the Commodity Futures Trading Commission to gain more regulatory power, John Reed Stark, a former SEC official, stated,
SEC is about– maybe ten times the size of the CFTC. The SEC’s mandate is one of investor protection. They have legions of attorneys who go out and do these inspections, examinations, and audits. The CFTC is more about the integrity of the marketplace. I don’t blame the crypto industry for wanting to be under the CFTC. It’s a much easier regulatory regime.
Finally, Garlinghouse shared his optimistic views on the potential regulatory shift in the ecosystem under the incoming President Donald Trump. Trump, who initially saw Bitcoin as a scam, has reversed his position, promising to turn America into a crypto power. The recent appointment of David Sacks as the country’s “crypto czar” has further bolstered the community’s sanguine thoughts on the leader’s new policies. “Donald Trump embraced crypto and crypto embraced Donald Trump,” said Garlinghouse.
