The Securities and Exchange Commission (SEC)’s recent statements about possibly appealing its decision to sue Ripple have drawn severe criticism from Ripple CEO Brad Garlinghouse.
Ripple CEO Brad Garlinghouse Accuses SEC of Causing Chaos in the Cryptocurrency Market
On July 23, Garlinghouse criticized the SEC on Twitter for its enforcement-based regulation strategy, which he claims has only harmed retail investors.
Additionally, he claimed that the SEC started this situation by purporting to be the crypto police while actually lacking any legal authority. The SEC’s enforcement operations, he continued, have left consumers holding the bag in bankruptcy court while they conduct news conferences.
After the SEC hinted at appealing the split-decision judgment against Ripple Labs, in which the regulator asserted that retail sales of XRP on exchanges did not meet the legal definition of a security, Garlinghouse voiced his criticism. The SEC voiced its objections to the choice by referencing its ongoing lawsuit against Do Kwon, the founder of Terraform Labs. The SEC lawyers responded by writing that these XRP sales ought to have been considered securities, and they intend to suggest that the SEC request such a review.
Garlinghouse Disagrees with SEC
Garlinghouse disagrees with the SEC’s assertions, calling it “absurd” to hold a judge responsible for just upholding the law. In order to protect individual investors, he also underlined the necessity for legislation that establishes clear norms rather than adding to the already dense regulatory environment.
Stuart Alderoty, chief legal officer of Ripple Labs, spoke on the topic as well. He compared attempting to convince someone that XRP isn’t security to “explaining the world is round to a flat earther.”
Leave a comment