In response to recent SEC comments, Ripple CEO claims it is "absurd" to blame the judge for simply enforcing the law.
Brad Garlinghouse, the chief executive of Ripple, recently expressed his discontent towards the US securities regulator's latest comments that insinuate a possible appeal against the company.
On July 23rd, Garlinghouse used Twitter to express his disappointment over the SEC's regulatory tactics, arguing that such approaches have primarily affected retail investors. He blamed the SEC for the ongoing turmoil, arguing that the SEC overstepped its jurisdiction when it took on the role of cryptocurrency regulator.
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Garlinghouse's comments came shortly after the SEC revealed new information about the Ripple case ruling.
During their ongoing case against Terraform Labs' founder, Do Kwon, on July 21st, the SEC conveyed its issues with the ruling that retail sales of XRP on crypto exchanges didn't fit the legal definition of a security.
SEC lawyers maintained that these XRP sales should have been classified as securities, indicating that aspects of the Ripple decision were flawed. They noted that SEC staff were evaluating different methods of further review and are likely to recommend that the SEC pursue such a review.
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.
Reacting to the SEC's statements, Garlinghouse described it as "absurd" to blame the judge for simply enforcing the law. He emphasized that clear legislation, not increased regulation by enforcement, is the only viable way to establish clear guidelines and protect retail investors.
Stuart Alderoty, Ripple Labs' chief legal officer, also added his comments, likening the task of convincing the SEC that XRP is not a security to "explaining to a flat earther that the world is round."
Gary Gensler, the SEC Chair, voiced his dissatisfaction with the court's verdict on XRP's security status on July 17th, noting that the regulator would continue to examine this judgment.
The ongoing case against Ripple continues to spotlight the need for clarity in the cryptocurrency regulatory environment.
