CEO of Ripple (XRP), Blames The SEC For “Creating This Mess”
Ripple’s CEO has spoken out about the U.S. Securities and Exchange Commission (SEC) and “the mess” it has made of regulating digital assets.
The head of Ripple slammed the government agency after it said it would appeal the recent decision.
Late last week, the SEC said that Judge Torres’s ruling that XRP sold to retail traders was not a security needs a “review.” Most people think this means they want to argue the court’s decision and drag the case out even longer.
On July 23, Garlinghouse said that a very important topic about saving retail has come up. He also said:
“The SEC created this mess by proclaiming it was the cop on the crypto beat when it had no legal jurisdiction.”
SEC is not defending consumers
The Ripple executive went on to say that customers are “left holding the bag in bankruptcy court while the SEC holds press conferences.”
Garlinghouse also said that it was “absurd” to blame a judge for following the rules to the letter.
“We all know legislation – not more regulation by enforcement – is the only way forward to provide clear rules and protect retail.”
Many industry experts and U.S. politicians agree with this idea. They say that the SEC is regulating and enforcing things that are outside of its authority.
Gary Gensler, who is the head of the SEC, said on July 17 that he was “disappointed” by the court’s ruling. He also said that the regulator would not stop going after the cryptocurrency business.
“We’re going to continue to try to bring firms that may not be in compliance into compliance,” he said at the time.
XRP Prices Slide
As soon as the good decision came out, the Ripple token went up by more than 80%. On July 20, XRP hit a 15-month high of $0.95, but since then it has gone down.
The cross-border coin lost 7.5% over the weekend and is now 15% lower than its high point last week.
At the time this was written, XRP was selling at $0.727, which was 1.4% less than the day before. It is still up 56% in the last two weeks, but those gains are slowly going away.
