Ripple CEO Brad Garlinghouse has criticized the United States Securities and Exchange Commission (SEC) over its handling of the case against Ripple. He condemned the SEC’s “regulation by enforcement” approach, which, according to Garlinghouse, has hurt retail investors.
Garlinghouse’s comments were in response to recent statements from SEC lawyers that hinted at a possible appeal in the case against Ripple Labs. The SEC raised concerns about the court’s decision that retail sales of XRP on exchanges didn’t qualify as securities. The regulator is considering further review and intends to recommend seeking such review.
The Ripple CEO expressed frustration with the SEC’s approach, stating that legislation, not regulation by enforcement, is needed to provide clear rules and protect retail investors. Ripple Labs’ Chief Legal Officer, Stuart Alderoty, also criticized the SEC’s stance, comparing it to trying to explain to a flat earther that the world is round.
SEC Chair Gary Gensler previously expressed disappointment with the court’s decision regarding the securities status of XRP and mentioned that the regulator would continue to assess this opinion.
At the time of publication, Ripple Labs’ XRP token was trading at $0.73, reflecting a nearly 50% increase in the last month.
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