{"id":20200,"date":"2023-07-24T03:39:36","date_gmt":"2023-07-24T03:39:36","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/ripple-ceo-brad-garlinghouse-the-sec-created-this-mess\/"},"modified":"2023-07-24T03:39:38","modified_gmt":"2023-07-24T03:39:38","slug":"ripple-ceo-brad-garlinghouse-the-sec-created-this-mess","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/ripple-ceo-brad-garlinghouse-the-sec-created-this-mess\/","title":{"rendered":"Ripple CEO Brad Garlinghouse: \u2018The SEC created this mess\u2019"},"content":{"rendered":"

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Ripple CEO Brad Garlinghouse has condemned the United States securities regulator over recent comments from its lawyers that hint at a possible appeal to its case against Ripple.<\/p>\n

In a July 23 tweet, Garlinghouse slammed the regulator for its “regulation by enforcement” approach, arguing it has only served to hurt retail investors.<\/p>\n

\u201c\u200b\u200bThe SEC created this mess by proclaiming it was the cop on the crypto beat when it had no legal jurisdiction,\u201d wrote Garlinghouse in a July 23 tweet. \u201cWhere\u2019s that gotten us? Consumers left holding the bag in bankruptcy court while the SEC holds press conferences,\u201d he added.<\/p>\n

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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\u2019s that gotten us? Consumers left holding the bag in bankruptcy court while the SEC holds press conferences.<\/p>\n

\u2014 Brad Garlinghouse (@bgarlinghouse) July 22, 2023<\/a><\/p><\/blockquote>\n

Garlinghouse\u2019s criticism came in response to the SEC\u2019s latest round of comments concerning Ripple, where the regulator hinted at appealing the split-decision ruling against Ripple Labs.<\/p>\n

On July 21, the SEC used its ongoing case against Terraform Labs founder Do Kwon to air out its concerns with the decision that retail sales of XRP (XRP) on exchanges didn\u2019t constitute the legal definition of a security.<\/p>\n

\u201cRespectfully, those portions of Ripple were wrongly decided, and this Court should not follow them,\u201d SEC lawyers wrote, asserting that these sales of XRP should have been deemed securities.<\/p>\n

\u201cSEC staff is considering the various available avenues for further review and intends to recommend that the SEC seek such review,\u201d they added.<\/p>\n

Related: <\/em><\/strong>Ripple applies for crypto license in the United Kingdom<\/em><\/strong><\/p>\n

Speaking directly to the SEC\u2019s comments, Garlinghouse said it was \u201cabsurd\u201d to blame a judge for simply applying the law.<\/p>\n

“We all know legislation \u2014 not more regulation by enforcement \u2014 is the only way forward to provide clear rules and protect retail,\u201d he added.<\/p>\n

Ripple Labs chief legal officer Stuart Alderoty chimed in with comments of his own, saying that trying to explain that XRP isn\u2019t a security is like \u201cexplaining to a flat earther that the world is round.\u201d<\/p>\n

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Talking to someone who still doesn\u2019t understand that the token itself is not the security is like explaining to a flat earther that the world is round.<\/p>\n

\u2014 Stuart Alderoty (@s_alderoty) July 22, 2023<\/a><\/p><\/blockquote>\n

On July 17, SEC Chair Gary Gensler also\u00a0expressed his disappointment over the court\u2019s decision on the securitiestatus of XRP, adding that the regulator would continue to assess this opinion. <\/p>\n

At the time of publication Ripple Labs’ XRP is changing hands for $0.73, up nearly 50% in the last month, according to data from TradingView.\u00a0<\/p>\n

Magazine: <\/em><\/strong>Crypto regulation \u2014 Does SEC Chair Gary Gensler have the final say?<\/em><\/strong><\/p>\n