Ripple CEO Brad Garlinghouse has criticized the United States Securities and Exchange Commission’s (SEC) regulation by enforcement approach, questioning the agency’s crypto jurisdiction.
Meanwhile, Gary Gensler, the chair of the SEC, has asked Congress for more funding to increase the agency’s oversight of the unregulated cryptocurrency market.
Funding, the commission said, is for them to execute their mandate of protecting investors and ensuring markets are fair and efficient.
Garlinghouse blasts SEC’s “political power play”
Garlinghouse called out Gensler for what he perceives as inconsistent crypto regulation.
He also said that the SEC had not provided clear guidance to the industry, which has led to uncertainty and confusion.
In a tweet on July 23, Garlinghouse argued that relying on enforcement actions rather than legislative clarity only adds to the confusion plaguing web3 market participants and fails to protect retail investors.
Garlinghouse’s criticism of the SEC’s regulatory approach is not new. He has consistently voiced his frustrations regarding the Ripple case’s handling and its broader implications for the cryptocurrency landscape.
He also alleges that the inconsistent approach has created uncertainty within the cryptocurrency industry and accuses the SEC of favoring certain players while disadvantaging others.
Meanwhile, SEC chair Gary Gensler has requested more funding from Congress to enhance the regulation of the cryptocurrency market.
In a recent hearing, Gensler emphasized the need for additional resources to protect investors and ensure fairness and efficiency within the crypto asset space.
He outlined that the SEC requires more positions to combat fraud and market manipulation, update guidelines for the crypto industry, and supervise the registration process of crypto exchanges and platforms.
Gensler’s funding request reflects the growing criticism the SEC faces concerning its approach to crypto regulation.
While the SEC has taken several enforcement actions against crypto companies in recent months, critics argue that more should be done to safeguard investors in the crypto market.
The outcome of Gensler’s funding appeal has the potential to shape the SEC’s effectiveness in addressing regulatory concerns within the cryptocurrency industry.
Crypto businesses eye global expansion moves
Meanwhile, Ripple, the fintech firm using XRP in one of its solutions, is expanding beyond crypto.
The blockchain company plans to acquire companies in crypto-friendly jurisdictions as part of its strategic growth outside the United States. Ripple is allocating $1 billion to expand its offerings beyond just liquidity.
Recent partnerships with Lemonway and Xbaht enable Ripple to facilitate crypto-enabled cross-border payments in France and Sweden, allowing faster transactions between consumers and businesses.
Furthermore, Ripple has received provisional regulatory approval in Singapore, where a significant portion of its global On-Demand Liquidity (ODL) operations takes place, permitting the company to operate and expand its digital asset services in the country. These expansions demonstrate Ripple’s commitment to global growth and innovation in the cryptocurrency space.
Ripple is not alone in this global expansion adventure, as many US-based crypto businesses are actively securing regulatory licenses abroad and could potentially dump the US sooner than later.
SEC plans to appeal on Ripples’ legal case
In other news, the SEC has reportedly signaled plans to appeal Judge Analisa Torres’ ruling that dismissed some of the securities claims made by the agency against Ripple.
The SEC had previously filed a lawsuit in 2020, accusing Ripple and its executives of conducting an unregistered securities offering by selling XRP.
The SEC’s current enforcement-focused approach could prolong the case and contribute to continued uncertainty within the industry.
Establishing clear and comprehensive legislation might offer a more stable regulatory framework for cryptocurrencies.
As the Ripple case progresses and the appeal is considered, its consequences will be closely observed, given its potential to shape future crypto regulations and provide greater clarity for industry actors.