{"id":49134,"date":"2021-09-09T10:36:22","date_gmt":"2021-09-09T07:36:22","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=49134"},"modified":"2025-09-02T11:09:20","modified_gmt":"2025-09-02T08:09:20","slug":"ripple-chief-backs-coinbase-in-clash-with-the-sec","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/ripple-chief-backs-coinbase-in-clash-with-the-sec\/","title":{"rendered":"Ripple chief backs Coinbase in clash with the SEC"},"content":{"rendered":"<p>The head of Ripple, Brad Garlinghouse, said that the warning received from the <span data-descr=\"Securities and Exchange Commission of the United States\" class=\"old_tooltip\">SEC<\/span> placed Coinbase in a situation similar to his own. He stressed that the regulator \u201ccontinues the war on crypto,\u201d and hinted at potential cooperation between the two organisations.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Thankfully today many recognize the havoc caused by regulation by enforcement. We\u2019re ready to work with responsible actors, pro-innovation members of Congress, and others in paving a path to clarity and certainty with US regulators. 2\/3<\/p>\n<p>\u2014 Brad Garlinghouse (@bgarlinghouse) <a href=\"https:\/\/twitter.com\/bgarlinghouse\/status\/1435706482801004544?ref_src=twsrc%5Etfw\">September 8, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cIf you want to go fast, go alone. If you want to go far, go together,\u201d wrote Garlinghouse.<\/p>\n<\/blockquote>\n<p>Ripple&#8217;s chief legal officer, Stuart Alderoty, also voiced support for the bitcoin exchange. He noted \u201cclear regulatory frameworks\u201d in jurisdictions such as the United Kingdom, Singapore and Japan, which foster innovation. In his view, the United States has a diametrically opposite situation.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Some (UK, Singapore, Japan, etc) have clear frameworks for innovation to flourish w\/ consumer &#038; market protection, others with sandboxes for safe collaboration between innovators &#038; regulators. How did the US end up with secret regulatory inquisitions? 2\/2<\/p>\n<p>\u2014 Stuart Alderoty (@s_alderoty) <a href=\"https:\/\/twitter.com\/s_alderoty\/status\/1435712935805046789?ref_src=twsrc%5Etfw\">September 8, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWe\u2019re told to cooperate in good faith with the SEC\u2026 and what do we get? Coercive actions (or threats of them) without any clarity. Their preferred method is intimidation from a position of power and inconsistent application of vague rules \u2014 ultimately harming consumers and markets,\u201d Alderoty said.<\/p>\n<\/blockquote>\n<p>In June, Coinbase announced crypto-savings accounts called Lend. The company said it had been actively engaging with the SEC about launching the product for the past six months. <\/p>\n<p>However last week the regulator <a href=\"https:\/\/u1f987.com\/en\/news\/sec-threatens-coinbase-with-lawsuit-over-planned-crypto-savings-accounts\">warned a Bitcoin exchange of potential legal action<\/a> in the event of the product\u2019s launch. Coinbase stressed that the Commission has not explained why it views Lend as a security.<\/p>\n<p>Jerry Brito, director of Coin Center, called the SEC&#8217;s move petty. He said Coinbase should release the product and engage in a direct confrontation with the regulator.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">2\/ Coinbase should go to court because the alternative is that the SEC will enforce against a small provider, settle with them out of court, and hold up the scalp as guidance. Enough with \u201cguidance.\u201d Howey and Reves are judge-made law. We need court decisions to get clarity here.<\/p>\n<p>\u2014 Jerry Brito (@jerrybrito) <a href=\"https:\/\/twitter.com\/jerrybrito\/status\/1435557432395194368?ref_src=twsrc%5Etfw\">September 8, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cI know it\u2019s easy for me to say, but Coinbase should move forward and launch its product, allowing the SEC to file suit and go to court. Let the regulator present its arguments, and let the judge decide whose side the law is on,\u201d Brito wrote.<\/p>\n<\/blockquote>\n<p>He added that the alternative is that the Commission initiates a case against a small player, settles the dispute pre-trial, and then \u201cwill use its scalp as guidance.\u201d Brito stressed that court decisions are needed to clarify the industry\u2019s position.<\/p>\n<p>Billionaire Mark Cuban shares a similar view. He noted that it\u2019s better that \u201cthey [Coinbase] take on the SEC, rather than the SEC go after a small decentralized entity and quickly obtain a ruling that becomes the law for the DeFi sector.\u201d The span above remains: <span data-descr=\"decentralized finance\" class=\"old_tooltip\">DeFi<\/span>.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Which is why it\u2019s important for <a href=\"https:\/\/twitter.com\/coinbase?ref_src=twsrc%5Etfw\">@coinbase<\/a> to be aggressive in their engagement with the SEC. It\u2019s better for the industry that they take on the SEC rather than the SEC go after a small decentralized entity and get a quick judgement that becomes the law of the land for DeFi.<\/p>\n<p>\u2014 Mark Cuban (@mcuban) <a href=\"https:\/\/twitter.com\/mcuban\/status\/1435700343011217416?ref_src=twsrc%5Etfw\">September 8, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In response to their words, Kraken chief Jesse Powell noted that the clash with the SEC could yield Coinbase \u201castronomical\u201d fines. He also cautioned that a judge might not be able to grasp the issues, and regulators would retaliate.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">1\/ Problem with going ahead now is fines\/penalties can be astronomical. Will a judge understand the complex issues and side against the government? Will SEC retaliate? Refusal to discuss merits is just more leverage to force a settlement\/shutdown. <a href=\"https:\/\/t.co\/g2uU1tg43o\">https:\/\/t.co\/g2uU1tg43o<\/a><\/p>\n<p>\u2014 Jesse Powell (@jespow) <a href=\"https:\/\/twitter.com\/jespow\/status\/1435632680356376582?ref_src=twsrc%5Etfw\">September 8, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWe won\u2019t say why we think your product is illegal, but we\u2019ll say you have no path to legalize it. If you disagree, go ahead and see what happens.\u201d The SEC is not the only regulator playing this game. That tactic is becoming standard practice because it works, Powell said.<\/p>\n<\/blockquote>\n<p>Kraken\u2019s chief added that regulators\u2019 actions will leave global competitors of U.S. firms to take the initiative. He urged Congress to take action. <\/p>\n<p>In December 2020, the SEC charged Ripple and its executives with <a href=\"https:\/\/u1f987.com\/en\/news\/sec-files-suit-against-ripple\">unregistered sale of securities<\/a> disguised as XRP tokens worth $1.3 billion. The regulator later amended the suit, focusing on the actions of <a href=\"https:\/\/u1f987.com\/en\/news\/sec-clarifies-brad-garlinghouses-liability-in-ripple-lawsuit\">Brad Garlinghouse and Chris Larsen<\/a>.<\/p>\n<p>In September 2021, the crypto-lending platform BlockFi said that the New Jersey Bureau of Securities moved the effective date for prohibiting the company from opening new BlockFi Interest Account (BIA) accounts for state residents from 2 September to 30 September.<\/p>\n<p>Regulators in <a href=\"https:\/\/u1f987.com\/en\/news\/alabama-regulator-accuses-blockfi-of-selling-unregistered-securities\">Alabama<\/a>, Texas and <a href=\"https:\/\/u1f987.com\/en\/news\/vermont-regulators-launch-probe-into-blockfis-activities\">Vermont<\/a> also filed similar claims against BlockFi.<\/p>\n<p>Read ForkLog\u2019s bitcoin news on our <a href=\"\/\/telegram.me\/forklog\" target=\"\u201c_blank\u201d\" rel=\"\u201cnofollow\u201d noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ripple chief Brad Garlinghouse said that a warning from the SEC put Coinbase in a situation similar to his company. He stressed that the regulator &#8216;continues the war on crypto,&#8217; and hinted at possible cooperation between the two organisations.<\/p>\n","protected":false},"author":1,"featured_media":49135,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[138,193,1551,112,128],"class_list":["post-49134","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-coinbase","tag-kraken","tag-mark-cuban","tag-ripple","tag-sec"],"aioseo_notices":[],"amp_enabled":true,"views":"18","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/49134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=49134"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/49134\/revisions"}],"predecessor-version":[{"id":49136,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/49134\/revisions\/49136"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/49135"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=49134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=49134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=49134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}