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Many people are irritated by the current dispute between the United States of America’s leading regulatory watchdog, the SEC, and San Francisco-based Ripple Labs. Although recent legal decisions have been very promising, many expect the issue of regulatory transparency to get much more muddled as the case continues.
Ripple CEO Brad Garlinghouse is one of them. During a recent CNBC interview, the Ripple exec described the United States’ lack of clarity as “frustrating.” In fact, Garlinghouse went on to assert that U.S watchdogs are the only watchdogs in the world to consider the XRP token as a security.
“Ironically, here in the United States, they have not provided that same clarity. It is the only country on the planet that has said XRP is anything other than a currency, Whether it’s Japan, the UK, Switzerland, Singapore – they all view XRP as a currency.”
That has some validity, particularly given that this level of regulatory uncertainty is not the standard in the rest of the world. Japan, Singapore, and Switzerland have all specifically identified crypto-assets, while the United States is still a long way from formally identifying the asset class.
In Switzerland, as per FINMA, ‘Swiss law does not define the term cryptocurrency or virtual currency. Cryptocurrencies to date are not treated as securities.’
Garlinghouse went on to praise Singapore and Korea for their XRP support in the same interview. He said,
“I give credit to markets like Singapore and even parts of Korea where there really has been a thoughtful government-led effort to define and have clear regulatory frameworks around cryptocurrencies”
It should be remembered, however, that the Ripple executive remains upbeat, particularly given the outcome of the aforementioned litigation. He said,
“The SEC has said XRP is a security. And so we’re now engaged in a court discussion. So far, I feel good about how that’s been going, but it’s certainly frustrating.”
He has previously expressed concern regarding the lack of effective cryptocurrency legislation. In another interview, Garlinghouse expressed concern about the lack of transparency that is stifling creativity in the world.
“Innovation here in the United States, in some ways, is on trial. We want innovation here in the US around crypto, around blockchain to thrive.”