RippleCEOBradGarlinghouseaddressedkeyconcernsabouttheU.S.SecuritiesandExchangeCommission(SEC)anditsongoinglegalbattleswiththecryptoindustryinarecentinterviewwithjournalistEleanorTerrett.

ThemeetingfocusedontheSEC\'scross-appealregardingthedefinitionofaninvestmentcontractundertheSecuritiesActanditsimplicationsfortheindustry.

GarlinghousewasrespondingtoinvestorAnthonyPompliano’squestion:“Ifcryptocurrenciesweretobeconsideredaninvestmentcontract,wouldthatchangetheclassificationunderwhichpeoplelikeCoinbaseandothersallowinvestmentcontractsontheirplatforms?”

“IftheSECprevailsatthispoint,itwouldbeaterriblesituationfortheindustry.Itwouldjustpushmoreofitoffshore,”Garlinghousewarned,citingthepotentialforregulatoryramificationstopushcryptoinnovationawayfromU.S.ports.

PomplianoalsopressedGarlinghousetooffersomethingpositiveaboutSECChairmanGaryGenslerortheagency’sroleinthecryptocurrencylandscape.Garlinghouse’sresponsewasstriking:“TherewillbeanewSECchairman.”

ThedebatecontinuedwithPomplianobringinguptheSEC’sapprovaloftheCoinbaseIPOandBitcoinETFs,whichhecontrastedwiththeagency’sotherwisehostileapproachtothecryptoindustry.Garlinghousedidn’tholdbackinhiscriticism:“TheyapprovedtheETFwithalotofsquealing.Theyweredraggedthroughcourt.Theywereforcedtodothis,andifthey’retakingcreditforapprovingtheBitcoinETF,that’sbullshit.”

Despitetheregulatorychallenges,GarlinghouseexpressedoptimismaboutRipple’sgrowthoverthenext12to18months,notingthatinstitutionalinteresthasincreasedafterRipple’srecentSwellevent,wheretalkswereheldwithsomeoftheworld’slargestbanks.

“Andit’snotjustaboutRipple’spaymentflows,”Garlinghousesaid.“We’reinthecustodybusinessnow,we’reevengettingintothestablecoinbusiness.There’salotofreasontobeoptimistic.”

*Thisisnotinvestmentadvice.

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