ChatGPT Can Regulate the US Crypto Market Better Than the SEC: Ripple CEO
TL;DR
- Ripple’s CEO criticized the SEC for inadequate crypto regulation in the US and suggested that even ChatGPT could offer more regulatory guidance.
- Ripple has gained an upper hand in its ongoing legal battle with the SEC, with key partial victories last year.
- The outcome of the lawsuit, set for trial in April 2024, is highly anticipated in the crypto community, as it could significantly impact XRP’s price and the broader market.
Criticizing the SEC
Ripple’s CEO – Brad Garlinghouse – once again lambasted the US Securities and Exchange Commission (SEC) for the lack of appropriate crypto rules in the States. He reminded that other countries and regions, including Japan, the United Kingdom, the European Union, and more, have worked on implementing a regulatory framework.
Garlinghouse went even further, claiming that a simple typing on the AI-powered chatbot ChatGPT would be more efficient than everything the Commission has done so far:
“I’ve jokingly suggested maybe what we should do is type on ChatGPT how should the US regulate crypto and that’s more than the SEC has done and it’s frustrating.”
Ripple’s boss believes that the watchdog’s Chairman, Gary Gensler, has been quite hostile toward the digital asset sector, imposing “regulation through enforcement.”
Subsequently, Garlinghouse outlined the CFTC as a “much more natural regulator.” It is worth noting that the agency supervises the trading of commodity futures, options, and swaps, while the SEC focuses on the securities markets.
SEC v. Ripple
The two entities have been involved in a legal battle since December 2020, when the SEC sued the company for allegedly selling XRP in an unregistered security offering. Ripple took the upper hand in the lawsuit last summer when Federal Judge Analisa Torres ruled that the XRP sales to retail investors did not constitute an offer of investment contracts.
The firm secured two additional partial victories in the following months. The US magistrates dismissed the SEC’s intention to appeal the initial decision, whereas CEO Brad Garlinghouse and Executive Chairman – Chris Larsen – were cleared of all accusations brought by the SEC.
The trial between the organizations is set for April 23, 2024. The SEC must file its brief with respect to remedies by March 13, 2024, whereas Ripple must file its opposition by April 12, 2024.
Earlier this month, the regulator requested an order compelling the company to hand over its financial statements for 2022-2023 and its post-Complaint contracts governing “Institutional Sales.” Ripple’s attorneys filed a Motion for Extension of Time, asking the deadline for a response to be prolonged to January 19.
The outcome of the lengthy lawsuit is anticipated by crypto participants since a decisive win for the firm may trigger an XRP price rally and overall market boom. On the other hand, the opposite scenario could harm the sector and lead to the implementation of stringent rules.
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