Ripple CEO Brad Garlinghouse has condemned the US securities regulator over recent comments from his lawyers hinting at a possible appeal to his case against Ripple.
In a July 23 tweet, Garlinghouse criticized the regulator for its “regulation by enforcement” approach, arguing that it has only served to hurt retail investors.
“The SEC created this mess by claiming they were the policeman in the crypto world when they had no legal jurisdiction,” Garlinghouse wrote in a July 23 tweet. “Where has that gotten us? Consumers are left with the bag in bankruptcy court while the SEC holds press conferences,” he added.
An important topic has arisen about the protection of retail trade. The SEC created this mess by claiming to be the policeman in the crypto world when it had no legal jurisdiction. Where has that gotten us? Consumers kept the bag in bankruptcy court while the SEC holds press conferences.
—Brad Garlinghouse (@bgarlinghouse) July 22, 2023
Garlinghouse’s criticisms came in response to the SEC’s latest round of comments on Ripple, where the regulator hinted at appealing the split decision ruling against Ripple Labs.
On July 21, the SEC used its ongoing case against Terraform Labs founder Do Kwon to raise concerns over the decision that retail sales of XRP (XRP) on exchanges did not constitute the legal definition of a security.
“Respectfully, those parts of Ripple were decided incorrectly and this Court should not pursue them,” the SEC lawyers wrote, stating that these XRP sales should have been considered securities.
“The SEC staff is considering the various avenues available for further review and intends to recommend that the SEC pursue such review,” they added.
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Speaking directly to the SEC’s comments, Garlinghouse said it was “absurd” to blame a judge for simply applying the law.
“We all know that legislation, not more regulation through enforcement, is the only way forward to provide clear rules and protect retail,” he added.
Ripple Labs legal director Stuart Alderoty weighed in with his own comments, saying that trying to explain that XRP is not a security is like “explaining to a flat earther that the world is round.”
Talking to someone who still doesn’t understand that the token itself is not security is like explaining to a flat earther that the world is round.
— Stuart Alderoty (@s_alderoty) July 22, 2023
On July 17, SEC Chairman Gary Gensler also expressed his disappointment in the court’s decision on the status of XRP securities, adding that the regulator would continue to evaluate this opinion.
At press time, Ripple Labs’ XRP is changing hands for $0.73, up nearly 50% in the last month, according to data from TradingView.
Magazine: Crypto Regulation: Does SEC Chairman Gary Gensler Have the Final Say?
This post ‘The SEC created this mess’
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