Ripple CEO blames SEC for mess.

Ripple CEO blames SEC for mess.

The Ripple CEO Criticizes the SEC’s “Regulation by Enforcement” Approach

The CEO of Ripple, Brad Garlinghouse, recently voiced his criticism towards the United States Securities and Exchange Commission (SEC) over their enforcement approach and their intentions to appeal the split-decision ruling against Ripple Labs. Garlinghouse strongly condemned the SEC’s behavior, arguing that it has only harmed retail investors.

Garlinghouse accused the SEC of creating the current situation through its “regulation by enforcement” approach. According to him, the SEC’s proclamation of being the regulatory authority in the crypto industry, even though it lacks legal jurisdiction, has caused confusion and detriment to consumers. In a tweet, Garlinghouse emphasized the negative impact of the SEC’s actions: “Where’s that gotten us? Consumers left holding the bag in bankruptcy court while the SEC holds press conferences.”

Garlinghouse’s criticism stemmed from the SEC’s comments regarding Ripple and their potential appeal against the court’s ruling. On July 21, the SEC highlighted its concerns during its ongoing case against Terraform Labs founder Do Kwon. The SEC disagreed with the decision that retail sales of Ripple’s XRP token on exchanges did not meet the legal definition of a security. The SEC argued that these sales should have been treated as securities.

In response to the SEC’s comments, Garlinghouse expressed his disbelief that anyone would blame a judge for simply adhering to the law. He emphasized that clear legislation, rather than additional regulation through enforcement, is necessary to establish proper guidelines and protect retail investors in the crypto industry.

Stuart Alderoty, Ripple Labs’ chief legal officer, also provided his perspective on the matter. He compared trying to explain that XRP is not a security to “explaining to a flat earther that the world is round.” Alderoty’s analogy highlights the difficulty of convincing someone who holds a rigid viewpoint, suggesting that the SEC is unwilling to consider alternative perspectives.

SEC Chair’s Disappointment and Ripple’s Current Status

The disappointment surrounding the court’s decision on the security status of XRP was not limited to Ripple’s CEO and legal team. SEC Chair Gary Gensler also expressed his own discontent and stated that the regulator would continue evaluating this opinion. This indicates that the SEC may take further action against Ripple to address their concerns regarding the legal status of XRP.

Despite the ongoing legal battle and regulatory challenges, Ripple’s XRP token has seen a positive trajectory in the market. At the time of writing, XRP is valued at $0.73, representing a nearly 50% increase in the last month. This suggests that market participants are still optimistic about the potential of Ripple’s technology and its future prospects.

In conclusion, Brad Garlinghouse’s criticism of the SEC’s “regulation by enforcement” approach reflects the frustration within the blockchain industry. The lack of clear regulatory guidelines and the SEC’s ambiguous jurisdiction have created uncertainty for market participants and investors. The ongoing legal battle between Ripple and the SEC highlights the need for legislative clarity to protect retail investors. The industry is eagerly waiting for a resolution to this case and clear guidelines from regulatory authorities to establish a secure and thriving blockchain ecosystem.

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