Ripple CEO Brad Garlinghouse criticizes SECs “regulation by enforcement” approach, stating that it has hurt retail investors and advocating for clear rules through legislation.
SEC hinted at appealing the split-decision ruling against Ripple Labs, where the regulator claimed that retail sales of XRP on exchanges didnt constitute the legal definition of a security.
Ripple‘s CEO and chief legal officer’s comments highlight the need for clarity and regulatory guidelines in the crypto industry to ensure the protection of retail investors.
Ripple CEO Brad Garlinghouse has expressed his strong disapproval of the United States Securities and Exchange Commission (SEC) over its recent comments regarding a possible appeal to its case against Ripple.
Garlinghouse took to Twitter on July 23 to criticize the SEC for its “regulation by enforcement” approach, which he argues has only hurt retail investors. He also stated that the SEC created this mess by proclaiming to be the crypto cop but having no legal jurisdiction. Moreover, he added that the SECs enforcement actions have left consumers holding the bag in bankruptcy court while they hold press conferences.
Garlinghouse‘s criticism came after the SEC hinted at appealing the split-decision ruling against Ripple Labs, where the regulator claimed that retail sales of XRP on exchanges didn’t constitute the legal definition of a security. The SEC used its ongoing case against Terraform Labs founder Do Kwon to air out its concerns with the decision. In response, the SEC lawyers wrote that these sales of XRP should have been deemed securities, and they intend to recommend that the SEC seek such review.
Garlinghouse has expressed his disagreement with the SECs comments, stating that it is “absurd” to blame a judge for simply applying the law. He also emphasized the need for clear rules through legislation and not more regulation by enforcement to protect retail investors.
Ripple Labs chief legal officer Stuart Alderoty also weighed in on the matter, comparing trying to explain that XRP isn‘t a security to “explaining to a flat earther that the world is round.” Overall, Ripple’s CEO and chief legal officers comments highlight the need for clarity and regulatory guidelines in the crypto industry to ensure the protection of retail investors.