February 26, 2024

Ripple CEO Brad Garlinghouse has slammed the U.S. Securities and Exchange Commission (SEC), accusing it of creating “chaos” by declaring itself to be “the crypto police” without legal jurisdiction.

Ripple CEO Brad Garlinghouse took to Twitter today to defend Judge Torres’ recent ruling declaring that Ripple’s sale of its XRP token did not constitute a sale of securities.

Ripple’s chief further accused the SEC of creating “confusion” around cryptocurrency regulation without the authority to do so.

Garlinghouse speaks out against SEC

Ripple’s partial victory over the SEC was celebrated by most of the industry, but also met with fierce opposition from some naysayers. Judge Analisa Torres ruled on July 13 that XRP tokens involved in retail sales on digital asset exchanges are not necessarily securities. However, Torres did rule that XRP qualifies as a security under the Howey test when sold to institutional investors.

At the time of the ruling, Garlinghouse commented that institutional sales represented the “minimal part” of the litigation and argued that if the SEC decides to appeal the decision regarding retail sales, it would only “harden” Torres’ decision. Garlinghouse further referred to the SEC as a “bully” because it targeted the “underdogs” in the industry without the necessary resources to build a strong defense.

Ripple CEO Continues to Criticize the Agency, Defending Retail Consumers.he explain:

“An important conversation arose about protecting the retail industry. The SEC caused confusion by declaring itself to be the police in the cryptocurrency space without legal jurisdiction. What do we do with it? When the SEC holds a press conference, consumers are held accountable in bankruptcy court.”

In the same article, Garlinghouse defended Judge Torres’ application of the law, emphasizing that “legislation — rather than more regulation through enforcement — is the only way to provide clear rules and protect retail.”

SEC may appeal decision, but it will take years

While the SEC didn’t explicitly say it would appeal Torres’ ruling, it did hint at that possibility.

this wall street journal (Wall Street Journal) report Do Kwon, who disgraced the Terraform Labs co-founder, is trying to use the landmark ruling as a precedent in his own battles with securities institutions. In a motion involving Kwon, the SEC urged the presiding judge not to seek guidance from the Ripple ruling.SEC explain Judge Torres’ decision “added an unfounded claim” to the Howey test and said there would be “further review” of the ruling.

Prominent cryptocurrency and pro-Ripple attorney John Deaton clarified the implications of a possible SEC appeal.

Deaton explain He said on Twitter that he doesn’t see a potential appeal as a setback for the industry.

Mr Deaton explained that a possible SEC appeal would take at least two years to come to fruition, and said that until that decision was made public, Judge Torres’ ruling remained law.

He assured nervous XRP holders,

“Don’t let anyone underestimate the importance of this victory.”

Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.