On Friday (April 30, 2021) during an interview with CNBC, Ripple CEO, Brad Garlinghouse, said that the cryptocurrency regulations in the US offer a frustrating lack of clarity. Brad’s comment comes as Ripple faces charges from the US Security Exchange Commission (SEC) that it used unregistered securities to raise funds amounting to $1.3 billion.
According to SEC, both Brad and Ripple are charged for issuing unregistered securities offerings, which amount to misleading investors.
In a response to the SEC, Ripple urged that XRP, which is the virtual coin used on the Ripple blockchain is a medium of exchange and is used for transactions both domestically and internationally. Therefore the SEC does not have the authority to classify it as a security.
US need clear crypto regulation like the ones found in some Asian countries . . .
During the interview with CNBC, Brad said,
“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.”
According to Brad, the US should come up with clear cryptocurrency regulations like the ones found in some Asian countries like Singapore to avoid the frustrating lack of clarity.
US is the only country to label XRP as a security
Brad also noted that every other country in the world has declared XRP as a digital currency and it is only the United States of America that has labeled it as a security and that is why Ripple is engaged in the current court case with the SEC.
“And so we’re now engaged in a court discussion,” he said. “So far, I feel good about how that’s been going, but it’s certainly frustrating.”
Ripple eyeing to conduct an Initial Public Offering (IPO) if it gets cleared by the SEC
On Thursday (April 29, 2021), the head of the SBI group in Japan, which is the largest sponsor of Ripple, said the group’s executive chair and co-founder together with Ripple CEO are considering conducting an initial public offering (IPO) for Ripple when Ripple settles its legal battle with the SEC.