- Ripple CEO calls for modern regulations that align with digital assets’ unique nature.
- FIT21 bill shifts crypto regulation from SEC to CFTC under Trump’s agenda.
The legal standoff between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) continues to capture widespread attention, with fresh claims stirring further debate.
Amid ongoing disputes, rumors have surfaced alleging that the crypto industry’s expenditure on legal defenses is less in comparison to investor losses that occurred from frauds and market failures.
Standing in defense against such controversies, Ripple [XRP] CEO Brad Garlinghouse recently shared his perspective on the same.
During an interview on ’60 Minutes’, which aired on 8th December, Garlinghouse offered insights into the company’s relentless battle against the regulatory agency.
As expected, Garlinghouse did not hold back in his critique of the SEC, attributing the agency’s aggressive stance on cryptocurrency to its past leadership under Gary Gensler.
60 Minutes interview with Ripple’s CEO
During the 60 Minutes interview, he highlighted this as a driving factor behind the formation of FairShake, an industry super PAC established by Ripple and two other companies to counter what he termed a “war on crypto.”
Garlinghouse even disclosed that Ripple has spent over $150 million in its ongoing legal fight to challenge the SEC’s classification of XRP as a security.
He emphasized that Ripple is not advocating for deregulation but is instead urging Congress to establish clear and distinct rules that recognize the unique characteristics of digital assets, rather than treating them like traditional stocks.
He added,
“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.”
He further emphasized that existing securities laws are outdated and fail to accommodate the complexities of modern blockchain technology.
That being said, Garlinghouse urged Congress to develop new regulatory frameworks tailored specifically to digital assets, highlighting the need for rules that align with the unique attributes of these emerging technologies.
He added,
“We haven’t been asking to be deregulated. We’ve been asking to be regulated. Our goal is to simply get rules written.”
How will the CFTC help smoothen crypto regulation?
Garlinghouse also referenced the FIT21 bill, a landmark legislation passed with bipartisan support that significantly impacted the crypto industry.
The bill redefined regulatory oversight, shifting much of the responsibility for cryptocurrency regulation from the SEC to the CFTC, aligning with President Donald Trump’s pro-crypto agenda.
According to FOX Business, the Trump administration also plans to empower the CFTC with broader authority over the $3 trillion digital asset market with the SEC still in the picture.
Needless to say, amidst Garlinghouse’s defense, XRP witnessed a notable price surge, nearing $2.60.
However, as of the latest update from CoinMarketCap XRP settled at $2.42, reflecting a 5.4% decline in the past 24 hours.
