Last Sunday (June 19) Charles Hoskinsonwho is the founder and CEO of the company IO Global Cardano’s research and development company (aka “IOG”, formerly known as “IOHK”) spoke to FinTech’s lawsuit against the U.S. Securities and Exchange Commission (SEC), which claims the $ XRP is unregistered. safety.
As you may recall, on December 22, 2020, the SEC announced that it had filed a lawsuit against Ripple Labs Inc. and two of its executives, who are also significant holders of securities, alleging that they raised more than $ 1.3 billion through an unregistered, ongoing offer of digital assets. In essence, the SEC argues that XRP is a security under U.S. federal securities law.
Yesterday, the CEO of the IOG spoke about this lawsuit in an interview with cryptographic influencer Ben Armstrong, who uses the nickname “BitBoy Crypto” on social media platforms.
According to a report The Daily Hodl, Hoskinson said:
“It’s just an example of what happens when you regulate through enforcement instead of legislation… You should have clear, understandable standards. And people should have a clear process to follow and comply with those standards. For example, in connection with the mass sale of Ethereum in Switzerland, we just asked the Swiss government, and after a few weeks of bargaining, they told us what to do, and we had it, and it was over.
“The SEC does not generally issue letters of inactivity in a manner that makes sense to the industry. So there is no real good way to join and integrate, and in its absence, people have different opinions, and there are winners and losers, and sometimes people survive crazy things.“
On April 26, Brad Garlinghouse, CEO of Ripplen, spoke about this lawsuit to interview Bloomberg on Bloomberg Crypto TV. When asked how Garlinghouse progressed, he replied:
“The reason why the Twitter crypto community cares so much about this issue is not just Ripple … this decision affects the whole industry. or not…
“The irony is [that] the only country on the planet that considers XRP safe is the United States… It has gone well… The SEC estimates that progress has been slow. Typically, in these situations, when the SEC raises a case, they want to act quickly. They have dragged their feet.
“Gary Gensler recently publicly stated that a delay in justice is a denial of justice, and unfortunately justice is being delayed here by the SEC’s ongoing efforts to push things out.“
The interviewer then told Ripple’s CEO that Bloomberg’s dispute analysts believe the SEC will eventually win the lawsuit and asked how Ripple would react if that prediction came true.
“I think the Howey test will be stretched into the unknown again… So the idea that the XRP we use as a currency is a security is, I think, just misleading.
“But look, unfortunately Ripple is already operating in a world where it’s like we’re lost, right? So in the US, XRP has all the intentions and intentions, there is no liquidity. It has been halted and frozen on most U.S. stock exchanges.
“Nevertheless, Ripple had a record year last year. We continued to grow very fast in our key product groups. Even Q1 was a record for us. Unfortunately, that growth now comes almost entirely from outside the U.S., and we’re hiring more and more people from outside the U.S., but our clientele now has about 95% of non-U.S. Payment companies.“
Ripple’s CEO was also asked how non-U.S. Customers use XRP for digital assets.
“Demand for our core product, which uses XRP to facilitate these cross-border payments, increased 8X year-over-year. So from the first quarter of last year to the first quarter of this year, it grew 8X, and it’s already a base, measured in billions. So from our point of view, demand has skyrocketed.“
On April 15, Garlinghouse explained why his attempt to use the $ XRP ID for payments, why he is “incredibly rising” with respect to krypton, and why Biden’s enactment regulation on krypton is “very significant.”
Ripplen’s CEO said:
“Ripple uses the XRP ID in our technology stack. We use it to enable very fast and very reliable cross-border trade. We use XRP because of its features that make it fast and affordable. There are other IDs that people use for other uses that don’t work as well for payments.
“From the beginning, the XRP ledger has really enabled scale payments… Bitcoin, although it is very good for digital gold, its speed and transaction price make it a less attractive type of payment to use. So, Ripple continues [to use] XRP because [of] its core features as a truly powerful technology… And I think Ripple will use the XRP book for other uses as well. We will certainly make investments, as I mentioned in the carbon marketplace, and in other industries that we think could be attractive.“
As for his outlook for the cryptocurrency market for the rest of the year, Garlinghouse said:
“I think so [it’s] It’s really hard to know the timing, but I’m incredibly bullish on krypton, and frankly it’s due to macro factors, and there are two I highlight…
“Macro factor in global inflation… You saw record inflation for four decades last week… Inflation in the United States 8.5%. Another factor – as you and I have talked about the transition from crypt to institutional use in general, solving real problems for real customers, and these scaled-up solutions that are not merely speculative activities that have really driven part of the historic crypt. functioning of the market.“
And when it comes to cryptographic oversight in the U.S., and more specifically the U.S. Securities and Exchange Commission (SEC) lawsuit against Ripple in December 2020, Ripple’s CEO had this:
“The core question relates to a nuanced legal question: is XRP a security and did Ripple sell XRP as an investment contract? Did Ripple sell unregistered securities? Did I, Brad Garlinghouse, sell XRP as an unregistered security?
“I think it is very clear that the laws in the United States have not been clear, and for the SEC then to go back in time and say you should have known all the time is a difficult case. I believe that what we are seeing in the court process – which is still going on – is a legal process that recognizes part of this.
“Even in the last couple of days, a court decision ultimately requiring the SEC to disclose some of the speeches by Corporate Finance Director Hinman that Ether is not a security. And the fact that the SEC, even now, can’t answer the question is an ethereal security. They do not answer this question.
“They say there is clarity, but then they do not provide clarity. They say they don’t comment on specific projects, but they comment on Bitcoin. Bitcoin is one of the biggest projects, but still just a project.“
And finally, when asked about the subject Executive provision “Ensuring the Responsible Development of Digital Assets,” signed by President Biden on March 9, Garlinghouse said:
“I think it was very significant. I was very positive. Frankly, the leadership we have seen outside the United States in krypton regulation is far ahead in the United States. We’ve been saying that for years, and I think at the heart of Biden’s executive order. It is precisely the fact that the U.S. is lagging behind in this emerging market for krypton and blockchain technology that the government recognizes.
“And more and more investment and more and more talent is going outside the United States. When entrepreneurs here in Paris talk to me about starting a business in crypt space, one of the first things I recommend to them is that you shouldn’t start a business in the US because it’s not so clear there… Even for Ripple, we’re hiring more than 300 people this year. More than half of them I expect to be outside the United States.“
According to a CNBC report, Ripple’s CEO also spoke to the SEC about the lawsuit against his company (as well as against him and Ripplen’s CEO Chris Larsen) in Fireside Chat (PBWS 2022) with CNBC’s journalist Ryan Browner:
“The trial has gone very well, and much better than I could have hoped for when it started about 15 months ago… But the wheels of justice are moving slowly.“
h/t – CryptoGlobe