Ripple CEO Brad Garlinghouse Blames the SEC for Ongoing Legal Dispute

Ripple CEO Brad Garlinghouse has voiced his strong disapproval of the United States Securities and Exchange Commission (SEC) in the wake of recent comments made by the regulator’s lawyers regarding a possible appeal in the ongoing legal dispute with Ripple.

In a tweet on July 23, Garlinghouse condemned the SEC’s “regulation by enforcement” strategy, asserting that it has inflicted harm on retail investors. He accused the SEC of creating the current situation by positioning itself as the authoritative figure in the crypto space without the necessary legal jurisdiction. Garlinghouse highlighted the negative impact of this approach, with consumers now grappling with financial losses while the SEC focuses on press conferences.

The Ripple CEO’s criticism was prompted by the SEC’s remarks about a split-decision ruling against Ripple Labs. On July 21, the SEC raised concerns during the case against Terraform Labs founder Do Kwon, arguing that retail sales of XRP on exchanges should be classified as securities, despite the prior ruling suggesting otherwise.

Referring to the SEC’s comments, Garlinghouse deemed it unreasonable to blame the judge for merely applying the law. He emphasized that implementing clear legislative rules is crucial to provide much-needed clarity and protection for retail investors, rather than relying on further regulation by enforcement.

Stuart Alderoty, Ripple Labs’ chief legal officer, also chimed in with remarks of his own, drawing an analogy between explaining that XRP is not a security and convincing a flat earther that the world is round.

The SEC’s Chair, Gary Gensler, expressed disappointment with the court’s decision on XRP’s security status on July 17, indicating that the regulator would continue evaluating the matter.

As of the time of publication, Ripple Labs’ XRP is trading at $0.73, reflecting a nearly 50% increase in value over the past month, according to data from TradingView. The ongoing legal battle and regulatory uncertainty surrounding XRP continue to influence the cryptocurrency’s price dynamics.

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