Is the SEC pushing crypto traders outside the US?

Over the last few years, a lot of criticism has been thrown the way of the United States SEC. This has been mainly due to the way the agency has been managing the crypto sector in the country. In a recent statement, the CEO of Ripple, Brad Garlinghouse, has also criticized the regulatory body for the kind of approach towards regulation of the assets in the country.

Ripple boss says SEC prefers to enforce before regulating

According to his statement, Garlinghouse mentioned that the SEC had neglected the healthy way to carry out enforcement, and the agency is going about it in a negatively aggressive way. The CEO also mentioned in the interview that this move had pushed a lot of crypto firms outside the country with more likely to join in the coming months. The Ripple boss also noted that the United States might be missing out on being the next location to house technological hubs and startups.

Garlinghouse highlights that the ongoing scuffle between his company and the regulatory agency is a good example. He noted that if the agency eventually overpowers Ripple in court, it could set a bad precedent which would see the regulatory body look into several other related companies in the country. While buttressing his point of companies leaving the country, Garlinghouse said that countries like the UK and Switzerland could leapfrog the US in innovation.

Garlinghouse advises a consumer protection framework

In his criticism of the government’s approach towards crypto, Garlinghouse also commended countries like the UK for rolling out a clear blueprint to regulate the crypto sector. He mentioned that some years ago, there were calls for a ban on the internet due to the explicit content that it houses. The Ripple CEO commended the decision of the government to stand firm and create a framework in that aspect and says it can do the same with crypto. He mentioned that the framework for the internet birthed companies like Amazon in the US while noting that the government is currently stifling the growth of startups in the crypto space.

The Ripple boss noted that should the government want to look into creating a lasting framework, consumer protection should be at the heart of such rules and regulations. He also mentioned that he feels that the long battle with the regulator might be put to bed before the end of this year. More companies have been vocal about the approach of the SEC towards regulating space over the last few years. Recently, a legal professional advised crypto companies to come out in their numbers against the regulator.

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