Chris Larsen, the co-founder and executive chairman of Ripple Labs, has voiced his criticism of the U.S. Securities and Exchange Commission (SEC) following recent legal losses faced by the agency. In particular, Larsen takes aim at the SEC’s defeats against both Ripple and Grayscale, suggesting that the regulatory body has come up short in matters that are crucial to the industry’s regulation.
Ripple’s Partial Victory against the SEC
Recalling Ripple’s partial win against the SEC on July 13, when Judge Analisa Torres ruled that the company’s programmatic sales of XRP did not fall under securities laws, Larsen expressed his viewpoint on the outcome.
Read Also: Legal Expert Points Up What Could Make Ripple and SEC Settle Before End of 2023
Larsen asserts that the SEC “lost on everything that was important to it [and] important in the regulation of the industry.” Despite the court ruling against Ripple’s XRP sales to institutional investors, Larsen remains undeterred, confident that the July 13 ruling stands as the “law of the land.”
Larsen acknowledges that the legal battle is far from over. He mentions the SEC’s interlocutory appeal, filed last month, as a potential factor that could prolong the conflict. However, Larsen remains unperturbed by the SEC’s request, underscoring the significance of the July 13 ruling.
SEC’s Defeat against Grayscale
Larsen further highlights the SEC’s recent loss against Grayscale, where the U.S. Court of Appeals for the District of Columbia Circuit ruled in favor of the crypto asset manager’s application to convert its Bitcoin Trust into a spot Bitcoin ETF.
Larsen applauds the court’s reprimand of the SEC, stating that such rebukes are rare and not often witnessed.
Shortly after his interview with Bloomberg, Larsen took to Twitter, expressing hope that the crypto industry is witnessing the end of the SEC’s “regulation by enforcement” policy. He believes that the courts have already started pushing back against the SEC’s approach and advocates for Congress to take the lead in shaping crypto policy.
I sincerely hope we’re seeing the beginning of the end of the SEC’s policy of regulation by enforcement. The Courts are rejecting it, and now it’s time for Congress to take the lead on crypto policy.
Thanks @EdLudlow @technology for the chat! https://t.co/3gZOR4lq5J
— Chris Larsen (@chrislarsensf) September 6, 2023
Read Also: Legal Expert States Why Ripple Executives and SEC Trial Won’t Happen
Criticism of Hostile US Government’s Crypto Policies
Larsen doesn’t limit his criticism to the SEC alone; he also directs his comments towards the U.S. government, attributing the loss of San Francisco’s potential as the blockchain capital of the world to the government’s “hostile policies and regulatory crackdowns” on crypto.
Larsen points out that other regions like Singapore, London, and Dubai have emerged as significant blockchain hubs due to the government’s push for crypto-related businesses to relocate offshore.
Larsen’s critique sheds light on the ongoing challenges faced by Ripple and the wider crypto industry, including regulatory uncertainties and the need for collaboration between government bodies and industry stakeholders to foster a conducive environment for innovation and growth.
Follow us on Twitter, Facebook, Telegram, and Google News
