Ripple (XRP) Boss Brad Garlinghouse Criticizes SEC for ‘Creating This Mess’

The Ripple boss has reprimanded the federal regulator after expressing his intention to appeal against the recent decision.

Late last week, the SEC said that the XRP sold by Judge Torres to retail traders was not a security, a decision that required “review.” This has been largely seen as an intention to appeal against the court’s decision and drag the case even longer.

On July 23, Garlinghouse said that an important topic has come up regarding the security of retail sales:

“The SEC created a mess by declaring that it was the policeman on Cryptobeat when it had no legal jurisdiction.”

An important topic has come up regarding the security of retail. The SEC created a mess by announcing that it was the policeman on Cryptobeat even though it had no legal jurisdiction, where did that land us? Consumers walked into bankruptcy court holding the bag while the SEC was holding a press conference.

— Brad Garlinghouse (@bgarlinghouse) 22 July 2023

SEC is not protecting consumers

The Ripple executive further said that consumers are “left holding the bag in bankruptcy court while the SEC holds press conferences.”

Garlinghouse said that it was “absurd” to blame a judge for faithfully applying the law.

“We all know that legislation – not more regulation by enforcement – is the only way to provide clear rules and protect retail.”

This notion has been reiterated by many industry experts and US lawmakers, who claim that the SEC is regulating by enforcement beyond its jurisdiction.

On July 17, SEC Chairman Gary Gensler expressed his “disappointment” at the court’s decision. He added that the regulator will not stop its enforcement actions targeting the crypto industry.

He said at the time, “We will continue to try to bring into compliance those companies that may not be in compliance.”

XRP price drop

The Ripple token exploded over 80% as news of the favorable decision broke. XRP reached a fifteen-month high of $0.95 on July 20, but has since retreated.

The cross-border coin fell 7.5% over the weekend and is currently down 15% from last week’s high.

At the time of writing, XRP was trading at $0.727 after losing 1.4% on the day. Although, it has gained 56% in the last fortnight, but this gain is gradually eroding.