Brad Garlinghouse, the CEO of Ripple, has voiced his strong concerns regarding the regulatory landscape for digital assets in the United States, criticizing the Securities and Exchange Commission for the “mess” it has created.
Expressing his frustration on Twitter, the Ripple boss openly criticized the federal regulator following its announcement of plans to appeal the recent court ruling.
Last week, the SEC declared its intentions to initiate a “review” of Judge Analisa Torres’ decision, which had stated that XRP sales to retail traders were not classified as securities. This move has been widely interpreted as an attempt to appeal the court’s ruling and prolong the legal proceedings even further.
In his scathing remarks, Garlinghouse highlighted the detrimental impact of regulatory uncertainty on the digital asset space.
Ripple Boss Slams SEC ‘Regulation By Enforcement’ Approach
Garlinghouse took to Twitter on July 23 to strongly criticize the SEC’s regulatory approach, accusing the agency of enforcing regulations without proper jurisdiction and ultimately harming retail investors.
In his tweet, Garlinghouse stated: “The SEC created this mess by proclaiming it was the cop on the crypto beat when it had no legal jurisdiction.”
An important topic has come up about protecting retail. The SEC created this mess by proclaiming it was the cop on the crypto beat when it had no legal jurisdiction Where’s that gotten us? Consumers left holding the bag in bankruptcy court while the SEC holds press conferences.
— Brad Garlinghouse (@bgarlinghouse) July 22, 2023
He pointed out the adverse consequences of the SEC’s actions, highlighting that consumers were left to bear the brunt in bankruptcy court proceedings while the SEC opted for press conferences.
Expressing his frustration further, Garlinghouse dismissed the idea of blaming judges for adhering to the law, terming it “absurd.”
XRP trading at $0.718 to the USD on the daily chart: TradingView.com
The Ripple boss’ sentiment resonates with industry experts and lawmakers who believe the SEC has exceeded its jurisdiction by employing a “regulation by enforcement” strategy.
This growing chorus of dissent raises concerns about the SEC’s approach to digital assets’ regulation and underscores the need for a more transparent and predictable regulatory framework.
Garlinghouse Labels SEC A ‘Bully’ Amidst Legal Victory
A recent report from Bloomberg revealed that Garlinghouse didn’t hold back in his criticism of the regulatory watchdog, referring to the SEC as a “bully” while celebrating the company’s triumph in the contentious legal battle.
The SEC’s actions have sparked a significant backlash from participants in the cryptocurrency market, who perceive them as part of a coordinated effort to stifle the growth of digital assets.
Notably, the regulatory body had previously taken legal action against major trading platforms, Binance and Coinbase, citing alleged violations of US securities law. Other entities, such as crypto exchange Kraken and the stablecoin Binance USD (BUSD), have also faced regulatory challenges throughout this year.
The recent victory for Ripple in the legal battle against the SEC has amplified the ongoing debate about the agency’s approach to the crypto industry.
Featured image from Bitcoin.com