The Chief Executive Officer (CEO) of Ripple Labs Brad Garlinghouse has pointed accusing fingers at the United States Securities and Exchange Commission (SEC) in response to the legal battle between both entities.
SEC Overstepped its Jurisdiction
According to Garlinghouse’s tweets, the SEC paraded itself as the authority over the crypto ecosystem when it was not in its jurisdiction to do so. Hence, he concluded that the regulator created the present “mess”.
“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,” his tweet said.
SEC vs Ripple Verdict Finally Comes
The SEC’s case with Ripple over the sales of XRP, a token that the former tagged unregistered security, has lasted for more than two years already.
All the while, XRP holders were hopeful that both parties would settle for a summary judgement. By the beginning of this year, pro-XRP lawyer John Deaton showed so much confidence about getting a court ruling as opposed to an out-of-court settlement which some others proposed.
It was believed that Judge Analisa Torres who was presiding over the case would give a verdict on or before March 31st. However, this was not the case as it wasn’t until the second week in July before the judge ruled that XRP is not security.
SEC Plans to Appeal Ripple’s Victory
On the other hand, the SEC is trying to use a separate ongoing lawsuit against Terraform Labs and its CEO Do Kwon to challenge the partial victory verdict of the judge in its case with Ripple Labs. Based on the filing made to Judge Jed Rakoff of the U.S. District Court for the Southern District of New York by SEC officials,
“Respectfully, those portions of Ripple were wrongly decided, and this Court should not follow them.” Therefore, “SEC staff is considering the various available avenues for further review and intends to recommend that the SEC seek such review,” they pointed out.
Garlinghouse explained that the judge should not be blamed for applying the law as legislation is the only way to provide clear rules and protect retail,