Brad Garlinghouse says regulator is preparing an attack on Ripple

The U.S. Securities and Exchange Commission (SEC) is preparing to file a lawsuit against fintech Ripple over alleged unregistered sales of securities in the form of XRP tokens, Fortune reports citing the firm’s CEO Brad Garlinghouse.

\n

\n

Today, the SEC voted to attack crypto. Chairman Jay Clayton — in his final act — is picking winners and trying to limit US innovation in the crypto industry to BTC and ETH. (1/3) https://t.co/r9bgT9Pcuu

\n

— Brad Garlinghouse (@bgarlinghouse) December 22, 2020

\n

\n

He said that he and Ripple co-founder Chris Larsen would also be named as defendants in the suit.

\n

Garlinghouse noted that the regulator would file the suit in the near future and called it an attempt by the outgoing chairman of the SEC, Jay Clayton, to \”limit innovation in the U.S. crypto industry to Bitcoin and Ethereum\”.

\n

\”Clayton has already done this by taking one foot out the door. Unfortunately, he decided to sue Ripple and hand the legal work to the next chair,\” he told the publication.

\n

The Ripple chief characterized the recent decision by the Treasury Department requiring mandatory verification of cryptocurrency wallet users and the planned SEC lawsuit against the company as \”parting shots\” by Trump-era officials hostile to the industry.

\n

In his view, under the new Biden administration the industry will find more understanding from the government.

\n

Garlinghouse criticized Clayton’s decision to bring a lawsuit before the holidays and said the company was ready to contend with the regulator.

\n

\”I think we should stand up for the entire crypto industry and not let the SEC intimidate the whole sector. We will be on the right side of history,\” stressed the head of Ripple.

\n

TechCrunch founder Michael Arrington endorsed him:

\n

\”This is an attack on all cryptocurrencies. While other countries look to the future, the SEC, in fear, continues its assaults.\”

\n

\n

This is an attack on all of crypto. While other countries are embracing the future, the SEC continues to lash out in fear. https://t.co/5TaTRBPqZZ

\n

— Michael Arrington (@arrington) December 22, 2020

\n

\n

Earlier, Garlinghouse said that the SEC’s designation of XRP as a security will not undermine the company’s business development.

\n

Chris Larsen did not rule out moving Ripple out of the United States due to overregulation.

\n

Subscribe to ForkLog news on Telegram: ForkLog Feed — the full stream of news, ForkLog — the most important news and polls.