This week, Ripple is facing troubles on two fronts: CEO Brad Garlinghouse testifies before the Senate about clearer crypto regulation, while investment platform Linqto files for bankruptcy.
Senate Hearings: A New Impetus for Crypto Regulation
The United States Senate has begun discussions on new bills regulating cryptocurrencies, marking an important step towards establishing clearer legislative frameworks. Key participants, including Brad Garlinghouse, are expected to discuss two key pieces of legislation: the GENIUS Act and the CLARITY Act, aimed at improving conditions for stablecoins and digital assets overall. Senators will raise issues about consumer protection and innovation to maintain the competitiveness of the United States in the digital financial market.
Linqto Files for Bankruptcy: Regulatory Troubles
Investment platform Linqto has filed for bankruptcy protection, driven by internal investigations and allegations of investor mishandling. The situation is compounded by Linqto’s significant holding of 4.7 million Ripple shares acquired on the secondary market, raising concerns about transparency and compliance with regulations, further confirmed by recent accusations of misleading customers and violating securities law.
Ripple Distances Itself from Linqto: Impact on Company Image
Ripple has taken steps to distance itself from Linqto, emphasizing that no business relationship has ever existed between the companies. CEO Brad Garlinghouse stated that despite Linqto's share ownership, they were never authorized to resell or manage Ripple's shares, which may impact the company's reputation in the market.
Amid current events, Ripple and Linqto are seeking solutions to adapt and overcome crises, while raising critical questions about cryptocurrency regulation and transparency in financial markets.
