Ripple’s CEO, Brad Garlinghouse, has voiced strong criticism against the U.S. Securities and Exchange Commission (SEC), accusing the agency of exceeding its authority in the cryptocurrency sector.
The SEC’s decision to appeal the ruling, which stated that XRP traded to ordinary traders was not a security, has sparked concerns that the agency might be deliberately prolonging the litigation process.
Garlinghouse expressed his disappointment with the SEC’s approach, arguing that the agency acted as if it had complete control over the entire cryptocurrency industry, which he believes is not the case. He further emphasized the detrimental impact of the SEC’s actions on customers, who are left to face the consequences of the agency’s press conferences and actions.
Highlighting the importance of clear rules and retail protection in cryptocurrency, Garlinghouse stressed that legislation, rather than increased enforcement, is the key to achieving these goals. This perspective is shared by many in the business world and the United States Congress, who see the SEC’s actions as an overreach of its regulatory authority.
In response to the court’s ruling on July 17, SEC Chair Gary Gensler expressed his disappointment but reaffirmed the agency’s commitment to enforcing regulations within the crypto sector. Gensler clarified that the SEC would continue its efforts to bring non-compliant firms in line with the regulations.
The news of the court’s ruling significantly impacted the Ripple token (XRP), leading to an impressive 80% surge in value. XRP reached a 15-month high of $0.95 on July 20, gaining popularity as the positive outcome of the ruling spread.
However, the SEC’s decision to appeal the ruling introduced uncertainty in the market, resulting in fluctuations in XRP’s value in the following days.
Garlinghouse reiterated that legislative clarity would be the most effective way to protect retail investors and create a stable environment for the cryptocurrency industry. He urged regulators to collaborate with the industry to develop regulations that balance innovation and protection.
As the appeal process unfolds, the crypto community and industry stakeholders will closely monitor the developments, hoping for greater clarity and regulatory certainty for the future of cryptocurrencies in the United States.
The battle between Ripple and the SEC highlights the ongoing challenges in regulating cryptocurrencies, with stakeholders on both sides advocating for their perspectives. The appeal process is sure to attract widespread attention, and its outcome could significantly shape the future landscape of the cryptocurrency market in the United States. Therefore, it remains a matter of keen interest and importance to the crypto community.