In yet another scathing criticism of the United States Securities and Exchange Commission (SEC), Ripple CEO Brad Garlinghouse took to social media platform X to voice his concerns.
In a post on August 29, Garlinghouse referred to the agency as ‘out of control’ in its management of the cryptocurrency sector. This statement comes amid growing criticism from key players in the crypto industry who accuse the SEC of hindering the progress of the crypto industry.
Brad Garlinghouse noted:
“While these are great outcomes… and it’s feeling like a summer of justice… It’s sad that so many in the US crypto community have to resort to the legal process to prove this SEC is out of control and consistently WRONG on the facts and the law.”
Read Also: Ripple Moved Millions of Dollars Worth of XRP
Inaccurate Interpretation of Facts and Law
Garlinghouse argued that the SEC has consistently made mistakes in interpreting both facts and the law. He expressed disappointment that many within the US crypto community have had to resort to legal processes to highlight the SEC’s flawed approach.
These comments echo the sentiment expressed by Ripple’s Chief Legal Officer, Stuart Alderoty, who highlighted the SEC’s legal setbacks and criticisms from the judiciary:
“The SEC is getting battered in the court. In our case, it’s been proven wrong, been called hypocritical, lacking faithful allegiance to the law, fined for discovery abuses, and now another distinguished court saying it’s “arbitrary and capricious”
SEC Faces Setbacks in Court
Garlinghouse’s statement follows Alderoty’s observation that the SEC is getting battered in the courtroom. Alderoty pointed to a series of recent developments that have been unfavorable for the regulatory agency. One notable incident was a court’s decision to instruct the SEC to reevaluate its rejection of Grayscale’s spot Bitcoin Exchange-Traded Fund (ETF) application.
The court’s decision holds significant implications as it could potentially lead to the approval of cryptocurrency-based ETFs, indicating a shift in the SEC’s stance on crypto-related financial products.
Alderoty expressed his opinion, stating that the SEC has been proven wrong, called hypocritical, lacks faithful allegiance to the law, and has faced fines for discovery abuses. He also highlighted another distinguished court’s criticism that the agency’s actions are arbitrary and capricious.
Similarly, Garlinghouse’s statement sheds light on the ongoing legal battle between Ripple and the SEC, which is set to enter its second phase with an appeal and trial. Despite the court ruling that XRP tokens are not securities, the SEC intends to appeal the decision. This ruling has raised questions about the agency’s regulatory approach in the rapidly evolving digital asset landscape.
Read Also: Ripple Becomes Holder of Payment Licenses In 31 U.S. States, Crypto Community Reacts
Ripple Anticipates Regulatory Shift
One significant development that adds to the mystique surrounding the SEC is the recent ruling on a spot Bitcoin ETF. The SEC has yet to approve such a product in the United States, but the court’s decision has raised hopes that a spot Bitcoin ETF approval may be on the horizon. This further emphasizes the need for the SEC to reassess its regulatory stance and adapt to the changing dynamics of the digital asset market.
Brad Garlinghouse’s strong criticism of the SEC’s approach to crypto regulations reverberates through the industry. The agency faces growing dissent and judicial setbacks as the legal battle between Ripple and the SEC intensifies.
The court’s rulings, including the instruction to reevaluate the Bitcoin ETF application, signify a potential shift in the SEC’s stance on cryptocurrency-related financial products.
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