Ripple CEO Criticizes SEC's Crypto Regulation, Suggests AI Approach

In a bold critique of the Securities and Exchange Commission’s (SEC) regulatory strategy, Ripple CEO Brad Garlinghouse condemns what he calls the SEC’s “regulation through enforcement.” He suggests an alternative approach involving artificial intelligence, specifically mentioning ChatGPT.

Garlinghouse Slams SEC's Approach:

During an interview at the World Economic Forum, Garlinghouse criticizes the SEC's prioritization of legal action over clear regulatory guidelines. He emphasizes the importance of the recent approval of spot Bitcoin exchange-traded funds (ETFs) for U.S. public trading.

Ripple's Role in Cross-Border Settlements:

Highlighting Ripple's focus on providing blockchain technology to global financial institutions, Garlinghouse underscores the company's contribution to faster and more cost-effective cross-border settlements through blockchain technology.

Concerns about Regulatory Actions:

Garlinghouse expresses concerns about the SEC's actions against various crypto firms, including Ripple, over the past three years. He points out the challenges faced by crypto-related companies due to the lack of clear guidelines from U.S. regulators.

Global Regulation Efforts:

While acknowledging global efforts in regulating the crypto space, Garlinghouse notes the lag in the United States. He highlights the collaborative efforts of other countries, including the European Union, in creating regulatory frameworks.

AI as a Regulatory Solution:

In a surprising twist, Garlinghouse suggests leveraging artificial intelligence, particularly mentioning ChatGPT, to formulate effective regulatory strategies for the U.S. crypto industry. He humorously proposes the idea of "typing into ChatGPT" for potentially more insightful outcomes.

Criticism of SEC Chairman:

Garlinghouse criticizes SEC Chairman Gary Gensler, accusing him of pursuing a personal agenda rather than acting in the best interest of the public. He labels Gensler a "political liability" and questions his approach to regulating the crypto industry.

Ripple's CEO advocates for a more innovative and tech-driven regulatory approach, expressing dissatisfaction with the SEC's current strategy. The debate around crypto regulation continues, with Garlinghouse proposing AI as a potential solution.