Ripple CEO Brad Garlinghouse has condemned the US securities regulator for recent comments from its attorneys that suggested its case against Ripple could be appealed.
In a July 23 tweet, Garlinghouse criticized the regulator for its “regulation by app” approach, arguing that it only hurt retail investors.
“The SEC created this mess by declaring it to be the cop working to win cryptocurrency when it has no legal jurisdiction,” Garlinghouse wrote in a July 23 tweet. “Where did we get that from? Consumers left the bag in bankruptcy court while the SEC was holding press conferences,” he added.
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
Garlinghouse’s criticism came in response to the latest round of comments made by the SEC regarding Ripple, in which the regulator hinted at appealing the split decision against Ripple Labs.
On July 21, the Securities and Exchange Commission used its ongoing case against Terraform Labs founder Do Kwon to express concerns about the decision that retail sales of XRP (XRP) on exchanges do not constitute the legal definition of a security.
“Respectfully, a wrong decision was made regarding these portions of Ripple, and the court should not pursue it,” the SEC lawyers wrote, emphasizing that these XRP sales should have been considered securities.
They added, “SEC personnel are considering the various avenues available for further review and intend to recommend that the SEC pursue such a review.”
Related: Ripple is applying for a crypto license in the UK
Speaking directly to the SEC’s comments, Garlinghouse said it was “absurd” to blame the judge simply for enforcing the law.
He added, “We all know that legislation – not more regulation through enforcement – is the only way forward to provide clear rules and retail protection.”
Ripple Labs Chief Legal Officer Stuart Aldrotti spoke with his own comments, saying that trying to explain that XRP is not a security is like “explaining to Flat Earthers that the world is round.”
Talking to someone who still doesn’t understand that the token itself isn’t security is like explaining to Flat Earth that the world is round.
– Stuart Alderoty (@s_alderoty) July 22, 2023
On July 17, the Chairman of the Securities and Exchange Commission (SEC), Gary Gensler, expressed his disappointment with the court’s decision regarding the security of XRP, adding that the regulator will continue to evaluate this view.
At press time, XRP is changing hands from Ripple Labs at $0.73, up nearly 50% in the last month, according to a report. data from TradingView.
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