According to recent reports, Brad Garlinghouse, the chief executive officer of Ripple, has criticized the US Securities and Exchange Commission for the latest remarks made by their lawyers implying that it might appeal in its action against Ripple.
Ripple Exec Bases SEC’s Policies
In a tweet sent on July 23, Garlinghouse bashed the Securities and Exchange Commission for their “regulation by enforcement” strategy, the action he claimed did nothing but to harm small-cap investors.
Creating a Mess
He said: “The SEC created this mess by proclaiming it was the cop on the crypto beat when it had no legal jurisdiction,” he further tweets: “Where’s that gotten us? Consumers left holding the bag in bankruptcy court while the SEC holds press conferences.”
The move comes after Marc Fagel, the SEC’s regional director and experienced attorney, joined in regarding the current legal dispute between Ripple and the SEC. According to Fagel, the court’s ruling has resulted in a divided outcome, leaving opportunity for disagreement on both sides. Garlinghouse responded to the statements by saying it was “absurd” to denounce a judge for simply enforcing the law.
He said: “We all know legislation — not more regulation by enforcement — is the only way forward to provide clear rules and protect retail.”
Ripple vs. SEC
The US regulatory authority filed an action against Ripple Labs in December 2020 for violating federal securities laws. Ripple allegedly sold XRP while the token was registered with the regulator, profiting approximately $1.5 billion from the sales. The conflict has been ongoing for approximately two and a half years, and several pieces of evidence, including the presentation of Hinman’s Speech, have emerged to support Ripple’s stance that its native money is not a security.
Conclusion of Legal Battle
Ripple executives, especially CEO Brad Garlinghouse, have long anticipated the conclusion of the legal processes.
Finally, a few days ago, a federal judge ruled that portions of Ripple’s XRP token sales, which had been sued as securities violations by the SEC failed to fully satisfy the conditions of a securities offering.