Ripple CEO Brad Garlinghouse has backed cryptocurrency exchange Coinbase and its founder Brian Armstrong after a warning from the SEC about a possible legal action.
This week, the US Securities and Exchange Commission (SEC) threatened Coinbase that it will sue it if the exchange launches a highly profitable product that implies the placement of the USDC stablecoin at an annual rate of 4%. Garlinghouse decided to support Armstrong, since he himself is involved in a lawsuit with the SEC, which considers XRP cryptocurrency to be a security.
Garlinghouse tweeted that Coinbase is now in a similar situation to Ripple. He stressed that the regulator continues to “wage the war against cryptocurrencies,” and hinted at joining forces in this fight against the SEC.
The SEC’s continued warfare on crypto continues to play out. In Dec 2020, I said that we’d been having discussions with the SEC for nearly 3 years about XRP, “..and yet never been met with clarity.” Sound familiar!? 1/2 https://t.co/wGHW4hCW2T
— Brad Garlinghouse (@bgarlinghouse) September 8, 2021
“If you want to go fast, do it alone. If you want to go far, you have to go together, ”wrote Garlinghouse.
Ripple General Counsel Stuart Alderoty has also spoken out in support of Coinbase. According to him, it is very problematic to cooperate with the SEC on a benevolent basis, since the Commission only receives threats, or it takes coercive actions without any explanation. Alderoti said that the SEC prefers to intimidate cryptocurrency companies and inconsistently apply “vague” rules, which ultimately only harms users and the entire cryptocurrency market.
We are told to engage w/ the SEC in good faith…and what do we get? Enforcement actions (or threats of them) with no clarity. Their preferred method of strong arm intimidation and inconsistently applying unclear rules hurts consumers and markets in the end. 1/2 https://t.co/wAU3AmCH93
– Stuart Alderoty (@s_alderoty) September 8, 2021
Alderoti cited the example of the UK, Singapore and Japan, which have developed clear regulatory frameworks that foster innovation. As for the United States, the situation is completely opposite in this country, the legal adviser wrote.
Earlier, Garlinghouse called the SEC lawsuit against Ripple an “attack” on all altcoins and suggested that such a scenario would await all major cryptocurrency issuers and even trading platforms.