Ripple CEO Brad Garlinghouse has criticized the U.S. Securities and Exchange Commission (SEC)’s enforcement approach to regulation and questioned the agency’s cryptocurrency jurisdiction.
Meanwhile, SEC Chairman Gary Gensler has asked Congress for more funding to strengthen the SEC’s oversight of the unregulated cryptocurrency market.
The funding is to fulfill its mission of protecting investors and ensuring market fairness and efficiency, the commission said.
Garlinghouse denounces SEC ‘political power struggle’
Garlinghouse accused Gensler of perceiving cryptocurrency regulation as inconsistent.
He also said the SEC has not provided clear guidance to the industry, which has led to uncertainty and confusion.
In a July 23 tweet, Garlinghouse argued that relying on enforcement actions rather than clarity in the law would only add to the confusion plaguing Web3 market participants and would not protect retail investors.
Garlinghouse’s criticism of the SEC’s regulatory approach is not new. He has consistently voiced his dissatisfaction with the handling of the Ripple case and its wider impact on the crypto world.
He also argued that inconsistent approaches have created uncertainty within the cryptocurrency industry, accusing the SEC of favoring certain players and disfavoring others.
Meanwhile, SEC Chairman Gary Gensler has made further requests. fundraising A call from Congress to tighten regulation of the cryptocurrency market.
At a recent public hearing, Gensler emphasized the need for additional resources to protect investors and ensure fairness and efficiency in the crypto space.
He outlined that the SEC needs more positions to combat fraud and market manipulation, update crypto industry guidelines, and oversee the registration process for crypto exchanges and platforms.
Gensler’s request for funding reflects the growing criticism the SEC faces over its approach to cryptocurrency regulation.
The SEC has taken several enforcement actions against cryptocurrency companies in recent months, but critics say more should be done to protect investors in the cryptocurrency market.
The outcome of Gensler’s funding appeal has the potential to shape the SEC’s effectiveness in addressing regulatory concerns within the crypto industry.
Cryptocurrency business pays attention to global expansion
Meanwhile, fintech company Ripple, which uses XRP in one of its solutions, is expanding its business beyond cryptocurrencies.
The blockchain firm 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 service beyond just liquidity.
With recent partnerships with Lemonway and Xbaht, Ripple facilitates crypto-enabled cross-border payments in France and Sweden, enabling faster transactions between consumers and businesses.
Additionally, Ripple has received provisional regulatory approval in Singapore, where a significant portion of its global on-demand liquidity (ODL) business is located, allowing 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 crypto space.
Ripple is not alone in this global expansion adventure, as many U.S.-based cryptocurrency companies are aggressively securing regulatory licenses abroad, potentially pushing the U.S. out sooner or later.
SEC plans to appeal Ripple’s lawsuit
In other news, the SEC has reportedly indicated plans to appeal Judge Analisa Torres’ ruling that dismissed some of the agency’s securities claims against Ripple.
The SEC previously sued Ripple and its executives in 2020 for offering unregistered securities through the sale of XRP.
The SEC’s current enforcement-focused approach may prolong litigation and contribute to continued uncertainty within the industry.
Clear and comprehensive legislation could provide a more stable regulatory framework for cryptocurrencies.
As the Ripple case progresses and appeals are considered, the outcome will be watched closely given its potential to shape future cryptocurrency regulation and bring more clarity to industry participants.