In the aftermath of the recent verdict, Ripple’s CEO, Brad Garlinghouse, has spoken out against the U.S. Securities and Exchange Commission (SEC), accusing the agency of overstepping its authority in the cryptocurrency sector.
The SEC’s announcement of its intent to appeal Judge Torres’s ruling, which declared that XRP traded to ordinary traders was not a security, has raised concerns that the agency is deliberately trying to prolong the litigation process.
Garlinghouse expressed disappointment with the SEC’s approach, stating that the agency acted as if it controlled the entire cryptocurrency industry, when it did not. He further highlighted the detrimental impact of the SEC’s actions on customers, who are left with the consequences of the agency holding press conferences.
Emphasizing the need for clear rules and retail protection in cryptocurrency, Garlinghouse argued that legislation, rather than increased enforcement, is the path to achieving these goals. Many in the business world and the United States Congress agree, seeing the SEC’s actions as an overreach of its regulatory authority.
In response to the court’s ruling on July 17, SEC Chair Gary Gensler expressed his disappointment but remained committed to enforcing regulations within the crypto sector. Gensler affirmed that the agency would continue its efforts to align non-compliant firms with the regulations.
The news of the court’s ruling significantly impacted the Ripple token (XRP), which experienced a remarkable 80% surge in value. Reaching a 15-month high of $0.95 on July 20, the XRP token saw an upswing in popularity as the ruling’s positivity spread.
However, the SEC’s decision to appeal the ruling has introduced uncertainty in the market, leading to fluctuations in XRP’s value in subsequent days.
Garlinghouse reiterated that legislative clarity would be the most effective way to secure retail investors and foster a stable environment for the cryptocurrency industry. He urged regulators to collaborate with the industry to develop regulations that balance innovation and protection.
As the appeal process unfolds, the crypto community and industry stakeholders will closely monitor the developments and hope for greater clarity and regulatory certainty for the future of cryptocurrencies in the United States.
The battle between Ripple and the SEC highlights the ongoing challenges in regulating cryptocurrencies, with stakeholders on both sides advocating for their perspectives. The appeal process will undoubtedly attract widespread attention, and its outcome could shape the future landscape of the cryptocurrency market in the United States.
