After the SEC crackdown, Ripple CEO Offers His Opinion on Global Crypto Development

The CEO of the blockchain payment startup battling the US SEC in court over the legality of XRP, Brad Garlinghouse, thinks there is a lot of good news about the acceptance of cryptocurrencies globally. After the Securities and Exchange Commission recently took action against Kraken and its cryptocurrency staking services, he made the comments.

The measures done by the US, its government, and the local regulatory authorities typically cause major harm to the bitcoin business because the US has the largest economy on the planet. Following rumors that the SEC might pursue crypto staking, the regulator actually took action and stopped Kraken's operations.

In addition, numerous reports over the last year or so, including executive orders from President Biden, had hinted at the impending implementation of strict restrictions. Garlinghouse thinks people should choose other countries instead because they are far more tolerant of business.

One of them is Dubai, which has put up a number of regulations permitting cryptocurrency firms to open up headquarters while being subject to local oversight. According to reports, the Australian government is likewise attempting to modernize its current regulatory frameworks to incorporate licensing and custody of assets

CEO's View of Coinbase

The CEO of Coinbase, Brian Armstrong, remarked on the reports just one day before the SEC's crackdown became official, saying that it “would be a bad route for the U.S. if it was allowed to happen.”

He claims that staking has numerous advantages for individuals as well as the overall industry, such as scale, additional security, and lower carbon footprint. Ironically, Coinbase was harmed as well, despite the SEC taking action against Kraken. Given that staking accounts for a sizable percentage of the publicly listed income statement, its shares plunged by more than 14% in a single day.

CEO of Ripple Confident That SEC Case Will Be Resolved in Less Than Six Months

The protracted conflict between both the U.S. and the fintech company Ripple Securities and Exchange Commission could be approaching to a resolution, according the firm CEO. On January 18, Garlinghouse told CNBC during the World Economic Forum in Davos, Switzerland, that it is doubtful that the judges will hasten a decision, trying to add:

“We‘re optimistic that this will certainly be resolved in 2023, and maybe [in] the first half. So we’ll see how it plays out from here. But I feel very good about where we are relative to the law and the facts.”

Gary Gensler, the chairman of the SEC, has insisted that XRP and the bulk of other cryptoassets are commodities. He believes that they should be registered and subject to the same regulations as stock brokerage firms. That left very little room in the Venn diagram for settlements, the Ripple executive said in response to Gensler's narrow perspectives on cryptocurrencies. Ethereum's staking system, which causes the “investment public to anticipate returns depending on the efforts of others,” has also been mentioned by Gensler as a reason why it is a security. Garlinghouse stressed that a bad verdict for Ripple would have an effect on the entire cryptocurrency business and would drive companies out of the nation.

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