If the US Securities and Exchange Commission (SEC) prevails in its case against the payments startup, Ripple CEO Brad Garlinghouse foresees detrimental effects on the whole cryptocurrency industry.
According to a recent Bloomberg interview with Garlinghouse, the whole cryptocurrency business would be affected if the SEC were to prevail in its case claiming that XRP is a security.
“The SEC’s case against Ripple wasn’t actually simply about Ripple or XRP, according to the SEC. It actually has to do with the sector and how the SEC sort of takes offense and criticizes the entire sector. I’m not sure whether everyone truly understood it when it first began two and a half years ago. And that is now universally acknowledged.
“The macro headline to me is that this is not a healthy way to regulate an industry. Regulation through enforcement as opposed to what we see in other countries where they do the work – they codify, they create a framework that allows an industry to thrive while protecting consumers.”
Garlinghouse says regulatory uncertainty in the US will and will negatively impact the world’s largest economy.
“Look at the geopolitical advantages for the United States that Amazons and Googles are based in and based in the United States.
I think we run a serious risk that this next technological development around blockchain and crypto doesn’t happen. It has already started moving outside of the United States.
And consumers suffer as a result. Because you don’t have the same protections that US regulatory frameworks can provide.”