is not a healthy way to regulate an industry. We need clarity, we need rules of the road. We need to have a level playing field. And we need to have a regulatory environment where innovation can thrive.
Garlinghouse’s comments come as Ripple faces a lawsuit from the SEC over the sale of XRP, which the agency claims is an unregistered security. Ripple has denied the allegations and has vowed to fight the lawsuit in court.
The outcome of the case could have significant implications for the crypto industry as a whole, as it could set a precedent for how other cryptocurrencies are regulated in the U.S.
Garlinghouse argued that the SEC’s enforcement-centric approach to regulating crypto could stifle innovation and harm the industry in the long run. He called for a more balanced approach that would provide clarity and certainty for businesses operating in the space.
“We need to have a regulatory environment where innovation can thrive, where entrepreneurs can build companies, where investors can invest with confidence,” he said.
Garlinghouse also criticized the lack of clarity around crypto regulation in the U.S., noting that other countries such as Japan and Singapore have taken a more proactive approach to regulating the industry.
“We need to have a level playing field. We need to have clarity around what is a security and what is not a security,” he said.
Despite the challenges facing the industry, Garlinghouse expressed optimism about the future of crypto, noting that the pandemic has accelerated the adoption of digital currencies and highlighted the need for a more efficient and secure financial system.
“We’re seeing more and more interest from institutional investors, we’re seeing more and more interest from governments,” he said. “I think the future is bright for crypto, but we need to get the regulatory environment right.”
