In this respect, Garlinghouse criticized that the SEC has taken action against Ripple for the pre-sale of XRP, while Coinbase is an American company that operates a cryptocurrency exchange platform. managed to float its shares on the stock exchange despite not being a licensed broker.
- Garlinghouse claims that the SEC is punitive with Ripple but permissive to other crypto companies.
- He pointed to Coinbase, which floated its shares without being a licensed broker.
- The IPO of Coinbase was done at a time when the exchange still had a listing the addition of an asset or an asset pair to an exchange. for XRP in your business listings.
The CEO of Ripple Labs, Brad Garlinghouse, recently stated that the U.S. Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission (SEC) contradictorily handles the regulations it enforces on crypto sector companies in the nation.
Contradictions in terms of the actions of the SEC
Garlinghouse’s comments came during his participation in a conference held in Toronto, Canada, today, in which the executive fromRipple exposed some contradictions by comparing the claim made by the SEC against him, as compared to the case of Coinbase which floated its shares on the stock exchange.
In this regard, Garlinghouse indicated that it is incongruous for the SEC to file a lawsuit against Ripple Labs and open court proceedings in early 2021 under the premise that he had launched “an unregistered securities offering for the pre-sale the sale of a cryptocurrency, ahead of it going public, to specific investors. of XRP.” This is the same year in which it approved the flotation of Coinbase with the actions COIN a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. in April of that year, by which time the company allowed the purchase/sale of the token. XRP in your business listings.
In this regard, the executive explained:
“The SEC now seems to take the position when they sued us that ‘XRP is a security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value. and always has been,’ but they approved Coinbase going public even though… it’s not a registered broker-dealer. There are some contradictions here that the SEC almost doesn’t … know whether it’s the left hand or the right hand.”
“The SEC, instead of doing the hard work to define a new set of clear rules, a new set of clear regulations… instead they decide that we’re going to do regulation through enforcement, which is not efficient and I really think has stifled innovation in the U.S.”
Trial SEC vsRipple continues
Garlinghouse’s remarks come at a time when Ripple Labs faces a court battle against the SEC, which has been going on for more than a year and in which the scales seem to be tipping in favour of the service company Blockchain.
During the dispute, the legal team ofRipple has managed to make visible aspects that could detract from the weight of the allegations of the SEC, among which it is worth mentioning the questioning that XRP is a security, that the regulator took legal action five years after the pre-sale, that the company did due diligence and consulted with the agency before marketing the token, among other facts.
About this, Garlinghouse reiterates that Ripple Labs will do battle in court and set an important precedent for the crypto ecosystem at large, as a victory for the company represents all those entities responsible for launching projects Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. and tokens to the market.
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Source: Cointelegraph, archivo DiarioBitcoin
Version by Angel Di Matteo / DiarioBitcoin
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