Ripple CEO, Brad Garlinghouse, has openly criticized the US Securities and Exchange Commission (SEC) following recent comments from the regulator, which suggest a possible appeal in their ongoing case against Ripple Labs.
Garlinghouse reproached the SEC for their “regulation by enforcement” policy on July 23, claiming it serves only to harm retail investors.
Garlinghouse accused the SEC of creating unnecessary chaos, dubbing it the “crypto cop” without any legal authority.
He stressed that this approach had resulted in retail investors being left in bankruptcy court, while the SEC conducted press briefings.
This backlash was in response to the SEC’s recent comments on Ripple, where it indicated a possible appeal against the mixed-decision ruling that went against Ripple Labs.
The regulator, through its ongoing case against Terraform Labs founder Do Kwon, voiced concerns about the decision that retail sales of Ripple’s XRP tokens on exchanges didn’t meet the legal definition of a security.
SEC lawyers argued that this ruling was erroneous and that sales of XRP should have been classified as securities.
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They confirmed that SEC staff is contemplating various methods for further review and plans to recommend that the SEC seek such a review.
Garlinghouse found these claims “absurd,” stating that blaming a judge for simply applying the law was unjust.
He highlighted the need for legislation, rather than more regulation by enforcement, to establish clear rules and protect retail investors.
Ripple Labs’ Chief Legal Officer, Stuart Alderoty, also voiced his opinion, stating that explaining XRP isn’t a security is akin to convincing a flat-earther the world is round.
On July 17, SEC Chair Gary Gensler expressed disappointment over the court’s decision regarding the securities status of XRP, indicating that the regulator would continue to examine this judgement.
Despite these ongoing issues, Ripple Labs’ XRP token is currently trading at $0.73, reflecting a nearly 50% increase in value over the past month, according to data from TradingView.
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