The CEO of Ripple, Brad Garlinghouse, has publicly criticized the US Securities and Exchange Commission (SEC) in response to recent comments suggesting a potential appeal in their ongoing case against Ripple Labs.
Garlinghouse’s sharp rebuke centers around the SEC’s “regulation by enforcement” approach, which he believes is detrimental to retail investors.
On July 23, Brad Garlinghouse openly denounced the SEC’s “regulation by enforcement” policy, asserting that it harms retail investors.
He accused the SEC of creating unnecessary chaos and referred to it as the “crypto cop” without legitimate legal authority.
According to Garlinghouse, this enforcement-based approach has resulted in retail investors facing bankruptcy while the SEC focuses on press briefings.
Garlinghouse’s criticism comes in response to the SEC’s recent comments about their case against Ripple Labs. The SEC raised concerns about the mixed-decision ruling that went against Ripple, specifically challenging the ruling that sales of Ripple’s XRP tokens on exchanges didn’t qualify as securities.
SEC lawyers argued that these sales should indeed be classified as securities and hinted at the possibility of appealing the decision.
Garlinghouse found the SEC’s claims “absurd,” arguing that blaming a judge for merely applying the law is unjust. He emphasized the need for clear legislation rather than relying on regulation by enforcement, calling for rules that protect retail investors.
Stuart Alderoty, Chief Legal Officer at Ripple Labs, also expressed his opinion on the matter. He equated explaining that XRP isn’t security to convincing a flat-earther that the world is round, implying that the distinction should be evident and acknowledged.
On July 17, SEC Chair Gary Gensler expressed disappointment over the court’s ruling on XRP’s securities status, indicating that the regulator would continue examining the judgment.
Despite the ongoing regulatory issues, Ripple Labs’ XRP token has shown remarkable resilience in the market. As of the latest data from TradingView, XRP is currently trading at $0.73, representing a substantial 50% surge in value over the past month.
