Ripple CEO Brad Garlinghouse has criticized US securities regulators over recent comments made by his lawyers regarding a possible appeal of the case against Ripple. In a tweet on July 23, Garlinghouse slammed the SEC's "mandatory regulation" approach, which believes s negatively impacts retail investors . He expressed frustration with the SEC's claim of being the "crypto police" without proper legal jurisdiction and questioned the accountability of consumers in bankruptcy court due to the SEC's actions.
Garlinghouse's criticism was sparked by the SEC's latest comments on Ripple, where the regulator hinted at appealing the split decision ruling against Ripple Labs. The SEC raised concerns over the decision to sell XRP to retail, suggesting that these sales should be considered securities. Ripple's legal team argued against this claim, stating that these parts of Ripple were wrongly determined and should not be followed by the court. The SEC staff is considering various avenues of further review and intends to recommend that the SEC seek such review.
Garlinghouse found it "ridiculous" to accuse judges of merely applying the law and stressed that clear legislative rules are needed to protect the retail industry. He advocated for legislation instead of further enforcement regulation. Ripple's Chief Legal Officer, Stuart Alderot y, also chimed in, comparing explaining XRP's non-security status to "explaining to a flat-Earthist that the world is round." SEC Chairman Gary Gensler expressed disappointment with the court's ruling on XRP's security status on July 17 and stated that the regulator will continue to evaluate the opinion.
At present, Ripple Labs' XRP token is trading at $0.73, showing a nearly 50 percent increase in the last month, according to TradingView data. The ongoing legal battle between Ripple and the SEC has sparked debates and discussions within the cryptocurrency industry and hi highlights the Need for clearer regulatory frameworks to address digital assets' classification and treatment.
