The head of Ripple has criticized the federal regulator following its stated intentions to appeal the latest ruling.
Late last week, the Securities and Exchange Commission said that Judge Torres’ decision that XRP sold to retail traders was not a security needed a “review.” This was largely seen as an intention to appeal the court’s ruling and delay the case for a longer period.
On July 23, Garlinghouse said an important topic had come up around hash protection, adding:
“The SEC created this mess by declaring it to be the cop working to win cryptocurrency when it has no legal jurisdiction.”
An important issue has emerged around retail protection. The SEC created this mess by announcing that it was the cop working to win cryptocurrency when it had no legal jurisdiction. Consumers left the bag in bankruptcy court while the SEC held press conferences.
– Brad Garlinghouse (@bgarlinghouse) July 22, 2023
The SEC does not protect consumers
The Ripple CEO went on to say that consumers were “left clutching the bag in bankruptcy court while the SEC holds press conferences.”
Garlinghouse added that blaming the judge for faithfully applying the law was “absurd”.
“We all know that legislation – not more regulation through enforcement – is the only way forward to provide clear rules and retail protection.”
This notion has been echoed by many industry experts and US lawmakers who have asserted that the SEC regulates through enforcement outside its jurisdiction.
On July 17, SEC President Gary Gensler expressed his “disappointment” with the court’s decision. He added that the regulator will not stop enforcement action targeting the cryptocurrency industry.
“We will continue to try to get companies that may not be committed to comply,” he said at the time.
XRP price slide
The ripple token exploded by more than 80% as news of the positive ruling spread. XRP reached a fifteen-month high of $0.95 on July 20 but has been declining since then.
The cross-border coin fell 7.5% over the weekend and is currently down 15% from last week’s high.
At the time of writing, XRP was trading at $0.727 after falling 1.4% on the day. However, it has been up 56% over the past two weeks, but those gains are slowly eroding.
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