Ripple’s CEO criticized the U.S. Securities and Exchange Commission (SEC) regarding the regulatory status of digital assets.
After announcing the company’s intention to appeal the court decision, the Ripple CEO strongly criticized the federal regulator.
At the end of last week, the SEC revealed that Judge Torres’ ruling, stating that XRP sold to retail traders was not a security, needed to be “reviewed.” This was generally perceived as an intention to appeal the court decision and was interpreted as further prolonging the case.
On July 23rd, Garlinghouse stated that a significant issue concerning the protection of retail traders had emerged and added:
“The SEC created this mess by proclaiming it was the cop on the crypto beat when it had no legal jurisdiction.”
SEC Protecting Consumers
The Ripple executive stated that consumers were left “holding the bag” in bankruptcy court, and criticized the SEC for continuing to hold press conferences.
Garlinghouse added that it is “ridiculous” to blame a Judge for faithfully applying the law.
“We all know legislation – not more regulation by enforcement – is the only way forward to provide clear rules and protect retail.”
This viewpoint has been echoed by many industry experts and U.S. lawmakers, alleging that the SEC has gone beyond its jurisdiction and implemented regulation.
On July 17th, SEC Chairman Gary Gensler expressed his “disappointment” with the court decision and added that they would not cease regulatory activities in the cryptocurrency sector.
“We’re going to continue to try to bring firms that may not be in compliance into compliance” he said at the time.
XRP in Decline
Over the weekend, this cross-border cryptocurrency experienced a 7.5% decline and is currently trading over 15% below last week’s highest level.