Known as the pioneer of cryptocurrency XRP, Ripple has been involved in a high stakes legal dispute with the US Securities and Exchange Commission since last year.
Ripple CEO Brad Garlinghouse doubled his dissatisfaction with the lack of clarity on US digital asset regulations when he appeared on CNBC’s Squawk Box on Wednesday.
He says that most of the problems with US cryptography are not cryptocurrency players, but lack of action from US regulators compared to global peers. The SEC has charged Ripple, co-founders Chris Larsen and Garlinghouse for making illegal securities offerings that allegedly raised more than $ 1.3 billion through the sale of XRP.
XRP rose about 8% on Wednesday morning in the crypto rebound, rising more than 300% year-to-date, but is far from the YTD highs during the recent crypto crash. Bitcoin has recovered from the recent sharp decline and remained at around $ 40,000 on Wednesday.
“There is a misunderstanding about how these technologies can be applied,” Garlinghouse said. “Regulatory clarity is lacking in the United States. In other countries, the G20 market, through either legislation or rulemaking to provide clarity and certainty that investors can participate in and build entrepreneurs. We are investing time and energy. “
Ripple was ranked 38th on this year’s CNBC Disruptor 50 list.
The battle between the crypto industry and regulators continues — on Wednesday, the UK banned ads that encouraged people to call Bitcoin “irresponsible.”
According to Robinhood, the No. 1 company in CNBC Disruptor this year, 9.5 million customers traded crypto on Robinhood Crypto in the first quarter of 2021, compared to 1.7 million in the fourth quarter of 2020.
Ripple’s on-demand liquidity service uses XRP as a kind of “bridge” between currencies. This allows payment providers and banks to process cross-border transactions much faster than traditional payment rails.
Despite this month’s recovery in cryptocurrency volatility, other tokens like Bitcoin and XRP have soared to new heights. Ripple owns most of the XRP tokens in circulation and sells a small portion of its holdings each month.
“XRP is an open source technology very similar to Bitcoin,” Garlinghouse explained. “But the SEC claims that these are investment contracts … Ripple’s sale of XRP to customers is actually an investment contract. That’s not true. If you buy XRP, Ripple’s ownership No. Ironically, you have an XRP owner who tried to sue the SEC even if you filed a lawsuit. “
Bitcoin, energy use, Elon Musk
Ripple’s CEO has criticized how much energy Bitcoin mining uses, but he wasn’t the only one who raised the issue, with everyone from Elon Musk to Bill Gates to Jack Dorsey. And Ripple hasn’t bet part of it. A secret war against Bitcoin. “If Ripple can control those people, there will probably be no proceedings from the SEC,” he said.
Earlier this month, Ripple strengthened its board of directors and appointed former US Treasury Minister Rosie Rios.
“After all, I think the industry should focus on utilities. These technologies are solving the real problems of real customers,” Garlinghouse told CNBC earlier, and Ripple continues to be the XRP ledger. He added that he would use tokens to streamline payments. ..Still, if XRP is considered a U.S. security, the company threatens to move to another jurisdiction.
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