Ripple CEO Calls Lack of U.S. Regulatory Clarity On Cryptocurrency “Frustrating”, XRP Surges 10%

In the SEC vs Ripple battle, the San Francisco-based blockchain startup is taking this fight further. In a fresh set of accusations, Ripple CEO Brad Garlinghouse has lashed out at the U.S. regulatory bodies for their lack of regulatory clarity on cryptocurrencies.

Speaking to CNBC, the Ripple CEO said that this is quite “frustrating” for crypto companies conducting their operations in America. Besides, he also added that the U.S. regulators are far behind their Asian counterparts when it comes to framing clear regulatory guidelines for digital assets.

Garlinghouse added: 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”.

Garlinghouse also spoke about Ripple’s ongoing legal battle with the U.S. SEC and how the U.S. is the only country in the world that treats XRP as a ‘security’. He said: 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.”

Last December 2020, the U.S. SEC filed a lawsuit against Ripple accusing the blockchain firm of selling XRP and unregistered securities. This has led to a legal battle between the regulator and Ripple with multiple hearings held over the last few months.

Ripple pledges no wrongdoing with the sale of its XRP cryptocurrency through an ICO in 2013. The company claims that it hasn’t violated any regulatory laws in this matter. Downplaying this current scrutiny on XRP and other digital currencies, Garlinghouse said that the focus should be on the benefits that these technologies bring to global 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. The Ripple CEO also said that his company will continue to use the XRP ledger to make efficient and instant cross-border payments.

Ripple’s XRP has shown solid strength over the last month during the crypto market rally. The XRP price has surged 200% in a month’s time hitting new highs for 2021. At press time, XRP is trading 11% up at a price of $1.55 with a market cap of $70.63 billion.