Ripple CEO Brad Garlinghouse expressed strong criticism towards the United States securities regulator due to recent comments made by its lawyers, which suggest the possibility of appealing the case against Ripple.
Taking to Twitter on July 23, Garlinghouse condemned the regulator’s “regulation by enforcement” strategy, stating that this approach has had negative consequences, particularly for retail investors. He expressed concern over the way the regulator has handled the case against Ripple and its cryptocurrency XRP, suggesting that it has resulted in adverse effects on the broader market and the interests of smaller investors.
“The SEC created this mess by proclaiming it was the cop on the crypto beat when it had no legal jurisdiction,” wrote Garlinghouse in a July 23 tweet. “Where’s that gotten us? Consumers left holding the bag in bankruptcy court while the SEC holds press conferences,” he added.
Brad Garlinghouse voiced his criticism as a reaction to the SEC’s recent comments regarding Ripple. These comments hinted that the regulatory body might pursue an appeal in response to the split-decision ruling against Ripple Labs. The ruling had significant implications for the legal classification of Ripple’s cryptocurrency XRP, and it is in light of these developments that Garlinghouse expressed his concerns and objections.