- Sologenic co-founder, Bob Ras, criticizes the SEC’s approach to crypto regulation, asserting that their aggressive stance has weakened their position and is negatively affecting the crypto industry.
- Ripple CEO, Brad Garlinghouse, reveals plans for the company to invest $1 billion into growth and acquisitions, aiming to expand their services beyond just payments and liquidity provision.
Sologenic Co-Founder Criticizes SEC’s Approach to Crypto Regulation
As the pending lawsuit between Ripple and the SEC approaches its resolution, Bob Ras, Sologenic co-founder, took to Twitter to air his views on the SEC’s handling of cryptocurrency regulations. According to Ras, the crypto sector is already grappling with the adverse “ripple effects” of the SEC’s aggressive stance. He argues that the agency’s efforts to classify nearly all digital assets as securities display a lack of understanding of these novel technologies, leading to unnecessary legal battles for companies like Ripple.
Ras believes that the SEC has inadvertently hindered its own progress by excessively pursuing crypto projects, many without justifiable reasons. Such an approach, he warns, could smother innovation and push numerous projects to seek friendlier offshore environments. Companies like Ripple, he says, are forced to grapple with this hostile regulatory climate.
Drawing an analogy, Ras likens the SEC to a traditional lawmaker attempting to apply outdated laws to a technology it barely understands. He insists that digital assets represent a new class, and treating them purely as securities overlooks their unique attributes and potential. Ras proposes that the SEC would have been wiser to establish a regulatory framework that considers the specific nature of these assets.
Ripple Plans Major Investment to Expand Services
Ras also points out that recent developments in the Ripple lawsuit have uncovered inconsistencies in the SEC’s stance. He suggests that there may be valid reasons to believe that not all digital assets fulfill the criteria to be classified as securities. These revelations, he argues, could impact other businesses, such as Coinbase.
Ras calls on the SEC to abandon its enforcement-heavy approach and instead embrace a regulation framework that both fosters innovation and protects investors. He warns,
“If the SEC continues its current approach, it risks further damaging its reputation and the US’s position in the global crypto market.”
In other news, Ripple Labs CEO Brad Garlinghouse revealed at the Dubai Fintech Summit that the company is planning to deploy $1 billion to expand its services. According to Garlinghouse, Ripple aims to grow organically and through acquisitions, expanding its scope beyond cross-border payments and liquidity provision. Investments are to be directed towards markets known to be friendly to blockchain technologies.