The Ripple CEO demanded clear regulatory rules for the crypto industry stating that the SEC shouldn’t undertake the approach of regulation through enforcement.
After registering its recent victory in its case against the US SEC, Ripple CEO Brad Garlinghouse further opened up and slammed the US SEC for creating a mess around XRP. Recently, Ripple secured a victory against the US Securities and Exchange Commission with the court stating that the programmatic sales of XRP don’t constitute securities.
In his recent tweets last Saturday, July 22, Garlinghouse wrote:
“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,” added he.
The Ripple CEO further stated that it is important to have crypto legislation in place. However, he said that there should be a fine line between legislation and regulation through enforcement. “We all know legislation – not more regulation by enforcement – is the only way forward to provide clear rules and protect retail. Glad to see more members of Congress like Rep. Ritchie Torres and Patrick McHenry champion this,” wrote Garlinghouse.
Ripple CEO on SEC’s Court Appeal
Galinghouse’s comments came after the US SEC showed an intention to appeal the court order on the Ripple XRP case. The SEC is thinking about challenging a recent court ruling that went against them in their case against Ripple Labs and the XRP token.
They expressed their disagreement with the Ripple decision in a filing related to another court case involving Terraform Labs and its co-founder, Kwon Do-Hyung. This response came after Terraform’s lawyers requested the dismissal of their case, citing the Ripple ruling as a basis.
In filing to Judge Jed Rakoff of the US District Court for the Southern District of New York, the SEC lawyers argued:
“Respectfully, those portions of Ripple were wrongly decided, and this Court should not follow them. SEC staff is considering the various available avenues for further review and intends to recommend that the SEC seek such review.”
On the other hand, Ripple is seeing a bright future that stands ahead of it. Soon after the court verdict, Ripple’s chief of counsel Stuart Alderoty said that he expects inquiries to pour in from financial institutions and banks for its on-demand liquidity product using XRP.
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