Ripple’s chief executive has spoken out about the U.S. SEC and “the mess” it has made of the regulatory situation for digital assets.
The Ripple boss has lambasted the federal regulator after its expressed intentions to appeal the recent ruling.
Late last week, the SEC said the decision made by Judge Torres that XRP sold to retail traders was not a security needs a “review.” This has largely been viewed as intent to appeal the court ruling and drag the case on for even longer.
On July 23, Garlinghouse said an important topic has come up about protecting retail, adding:
“The SEC created this mess by proclaiming it was the cop on the crypto beat when it had no legal jurisdiction.”
SEC Not Protecting Consumers
The Ripple executive went on to say that consumers are “left holding the bag in bankruptcy court while the SEC holds press conferences.”
Garlinghouse added that it was “absurd” to blame a Judge for faithfully applying the law.
“We all know legislation – not more regulation by enforcement – is the only way forward to provide clear rules and protect retail.”
The notion has been echoed by many industry experts and U.S. lawmakers who assert the SEC is regulating by enforcement beyond its jurisdiction.
On July 17, SEC Chair Gary Gensler expressed his “disappointment” over the court’s decision. He added that the regulator would not stop its enforcement actions targeting the crypto industry.
“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
The Ripple token exploded more than 80% as the news of the favorable ruling broke. XRP topped out at a fifteen-month high of $0.95 on July 20 but has retreated since.
The cross-border coin fell back 7.5% over the weekend and is currently down 15% from last week’s high.
At the time of writing, XRP was trading at $0.727 after dropping 1.4% on the day. However, it remains up 56% over the past fortnight, but those gains are slowly eroding.