Following the debate between the CFTC and the SEC about which regulatory watchdog should be best suited to regulate cryptocurrencies, Ripple CEO and founder Brad Garlinghouse has given his opinion on the matter.
Only America in the world recognizes XPR as a security Speaking in a Bloomberg interview today, Garlinghouse noted that the most suitable regulator for the cryptocurrency space is the Commodity Futures and Trading Commission. For many, Garlinghouse might say he favored the CFTC because of the lawsuit filed against Ripple by the Securities and Exchange Commission. Ripple's two executives, including Garlinghouse and Chris Larsen, had an unregistered securities offering that raised $1.3 billion in 2013. It is worth remembering that he was accused of executing While the SEC is adamant that Ripple's XRP is a security, it has to prove this fact in court.
In the interview, Garlinghouse stated that the United States SEC is the only regulator in the world to recognize XRP as a security, as other global regulators classify the cryptocurrency using different terms.
“The only country on the planet that thinks XRP is a security is the United States.”
While no other country has joined the SEC to classify XRP as a security, the US agency allegedly adopted several ways to get Ripple to agree to a settlement that would ultimately end the lawsuit.
Ripple Works Like it's Defeated
Since the charges were announced in December 2020, the SEC has been accused of using various tactics to delay the decision of the case. The delays resulted in the case being postponed to next year. While there is no guarantee as to which side will win, many experts predicted that Ripple would emerge victorious from the lawsuit. Meanwhile, Garlinghouse said the company was already operating as if it had lost the case. With this statement, Garlinghouse showed that he wanted to keep his hopes high. A possible defeat for Ripple means that the blockchain company will not operate in the United States and the company will have to rely on its clients in other countries to be successful.
For years, both the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission have competed with each other to determine which agency will ultimately be tasked with overseeing the regulation of the cryptocurrency market. Both the CFTC and SEC have made regulatory decisions on issues affecting the emerging industry, with an emphasis on the crypto space. For example, based on the utility of Bitcoin, the CFTC declared that the world's largest cryptocurrency by market capitalization is a commodity, and therefore the asset class falls under its jurisdiction. Similarly, the SEC, through its former director, William Hinman, also clarified that Ethereum is not a security and does not fall under the regulatory authority of the Securities Authority.