Ripple (XRP) CEO Brad Garlinghouse said the United States Securities and Exchange Commission (SEC) has “no infrastructure for a “registered token” to trade nor provided any clarity” on what these tokens are.
Garlinghouse noted that the SEC under Chair Gary Gensler, has severally urged crypto firms to register with the financial regulator. However, the commission has failed to provide a framework for trading registered tokens and what these tokens are.
According to Garlinghouse, the SEC’s moves have declared war against the crypto industry. Recently, the regulator brought several enforcement actions against crypto firms that allegedly violated federal securities laws.
The Ripple chief highlighted the regulatory works in the European Union and questioned why the same was not happening in the US. He said:
“The 27 EU member countries can agree on a set of rules with MiCA… what’s stopping the US.”
The EU’s Markets in Crypto Assets (MiCA) framework would transform the region’s regulatory landscape to benefit the crypto industry. The guideline is awaiting a final vote in April.
Crypto needs to rebuild trust
Meanwhile, Garlinghouse said firms operating in the US crypto industry must rebuild trust by enabling more transparency and creating utility. He said this was the “only way we collectively move forward.”
Garlinghouse noted that the failure of crypto firms like FTX and Terra had shattered the trust in the industry.
Several community members also shared Garlinghouse’s view, with many advising Ripple to start rebuilding trust and showing the industry that there are good actors.
A crypto enthusiast Cuzzin Henry said:
“I don’t see anyone bashing the entire stock trading sector because of Bernie Madoff or others alike; the crypto industry just wants the same respect.”
Meanwhile, Garlinghouse’s statement reinforces his view about the US government’s approach to crypto regulation. He previously said this “regulation-by-enforcement” approach would force several crypto companies out of the US.
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