Ripple CEO Says The U.S. SEC is Holding Back XRP’s Potential

Ripple CEO Says The U.S. SEC is Holding Back XRP’s Potential

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Ripple CEO Brad Garlinghouse reiterated his concerns over the lack of regulatory clarity from the U.S. Securities and Exchange Commission (SEC).

Previously, both Garlinghouse, and Ripple CTO Chris Larsen, had expressed a desire to leave the U.S. due to what they perceive as stifling conditions.

More recently, in a CNN interview, Garlinghouse said little has changed. And in the absence of clear SEC guidance, U.S. investors are cautious over investing in XRP.

Using the example of the growth of the internet, Garlinghouse said, during the burgeoning period of internet development, a clear regulatory framework paved the way for U.S. internet firms to grow and dominate.

“We certainly saw that in the age of the internet, twenty plus years ago, that the U.S. had clear regulatory framework. That allowed investors to come in and make those investments.”

But now, in the case of cryptocurrency, it’s overseas regulators that are encouraging growth through clarity of regulation.

Garlinghouse fears that without regulatory certainty, the U.S. cryptocurrency industry will continue to lose ground.

More specifically, he feels frustrated that XRP faces challenges that don’t apply to either Bitcoin or Ethereum.

Ripple Aggrieved That Bitcoin and Ethereum Get a Pass

In June 2018, SEC Director William Hinman gave a speech at the Yahoo Finance All Markets Summit in which he declared Bitcoin and Ethereum were not securities.

In determining this, Hinman referenced several key points to do with the Howey test. His verdict came down to a judgment that both Bitcoin and Ethereum are decentralized.

“But this also points the way to when a digital asset transaction may no longer represent a security offering. If the network on which the token or