Ripple admits error in not approaching the SEC before launching XRP
Ripple Labs CEO Brad Garlinghouse made an important statement stating that the company made a mistake by not reaching out to the United States Securities and Exchange Commission (SEC) before launching the XRP token.
During his appearance at DC Fintech Week on October 23, Garlinghouse admitted that the lack of initial engagement with regulators created major challenges for Ripple and the entire cryptocurrency industry.
The executive highlighted that Ripple should have started a dialogue with the SEC from the first days of XRP's launch.
“I look back and see we made a mistake by not getting involved sooner. Now we are chasing the loss”, said the CEO.
Furthermore, he revealed that in recent years he has intensified his trips to Washington, D.C. in an attempt to right this wrong. Ripple has been facing a long legal battle with the SEC. The regulator accuses the company of having sold XRP as an unregistered security to institutional investors.
Although part of the ruling exempted the sale of XRP to the general public from being considered a security, the SEC appealed the ruling. This means that the dispute is not over yet.
Regulation and challenges for Ripple
Brad Garlinghouse, however, also criticized SEC Chairman Gary Gensler's approach. The Ripple executive classified Gensler's management as a “repression” of the cryptocurrency industry.
According to the CEO, the United States is lagging behind other countries in creating a clear regulatory environment for the crypto sector. He also blamed Senator Elizabeth Warren for spreading misinformation about the crypto market.
Despite the legal challenges, Garlinghouse reaffirmed that Ripple will continue to fight for XRP's legitimacy in the market.
“Part of this effort includes educating the public and regulators about the seriousness of the crypto space,” he explained. He also highlighted that Ripple has been active in political donations, contributing nearly $50 million to support pro-crypto candidates.
Garlinghouse took the opportunity to comment on the growing interest in cryptocurrency ETFs. As stated, the creation of an XRP ETF in the United States is inevitable. He further noted that the success of Bitcoin ETFs demonstrated the demand for cryptocurrency-based financial products from both institutional and retail investors.
“I believe XRP has an engaged and active community, both in the US and internationally. Over time, we will see more and more institutional participation in the crypto sector, and that includes XRP,” said Garlinghouse.