• The Ripple CEO Brad Garlinghouse has criticized the U.S. SEC for creating a “mess” when it comes to digital assets regulation.
• Last week, the SEC said the decision made by Judge Torres that XRP sold to retail traders was not a security needs a “review” which could potentially drag on the case even longer.
• Garlinghouse claims that the SEC created this mess by proclaiming itself as the cop on crypto beat without any legal jurisdiction and that consumers are left holding bags in bankruptcy court while the regulator holds press conferences.
Ripple (XRP) Boss Criticizes US SEC
Ripple’s chief executive Brad Garlinghouse has spoken out about the US Securities and Exchange Commission (SEC) and “the mess” it has made of digital asset regulation. He lambasted the federal regulator after its expressed intention to appeal recent rulings made regarding XRP being classified as not a security when sold to retail traders.
SEC Proclaims Itself Crypto Cop
Garlinghouse noted an important topic had been raised about protecting retail investors, adding: “The SEC created this mess by proclaiming it was the cop on the crypto beat when it had no legal jurisdiction.” This proclamation has resulted in consumers being left with their investments in bankruptcy court while the SEC holds press conferences, according to Garlinghouse.
SEC Not Protecting Consumers
The Ripple boss further argued that blaming Judge Torres for faithfully applying law is absurd and believes legislation is needed rather than further regulatory enforcement in order to provide clear rules and protect investors from risk. He questioned why there have been no actions taken against those responsible for fraudulent activities such as firm EtherDelta or those who have dumped billions of dollars worth of XRP on unsuspecting investors over time, yet individuals like him face lawsuits from regulators.
Calls For Industry-Wide Regulatory Clarity
Garlinghouse concluded his comments by calling for industry-wide regulatory clarity so startups like Ripple can focus on building products instead of worrying about potential litigation risks posed by regulators who do not understand how these technologies work or why they exist in their current form.
In conclusion, Ripple CEO Brad Garlinghouse has accused US SEC of creating a “mess” when it comes to digital asset regulation and called for more clarity from regulators so startups can concentrate on building products rather than worrying about potential litigation risks posed by them due to lack of understanding towards these technologies.