“SEC Has Lost Sight of Its Mission to Protect Investors” Ripple CEO Says
Ripple Scores Against SEC
Brad Garlinghouse, Ripple’s CEO, stated that Ripple has achieved three successive legal wins against the SEC. Firstly, a July 13th ruling clearly stated that XRP is not a security. Secondly, the court rejected the SEC’s request for an interlocutory appeal. Thirdly, the court dismissed, with prejudice, the allegations against Chris Larsen and himself. Garlinghouse remarked on the repetitiveness of the SEC’s actions, likening it to the proverbial definition of insanity, which is doing the same thing repeatedly and expecting different results. He implied that the SEC persists in this manner despite their continuous failures in these legal battles.
SEC Is Being Arbitrary and Capricious
Referring to the SEC and the Bitcoin ETF, Garlinghouse pointed out some pretty choice words by the judge.
A federal judge talking about a federal agency saying the SEC is being arbitrary and capricious. Generally, judges tend to be pretty down the middle and try to not be dramatic, those are damning words. So, I think at some point the SEC has to step back and realise that their approach of regulation through enforcement, that has to break.
Next Steps for Ripple
Regarding the SEC seeking around US$ 770 million (AU$ 1.2 billion) in disgorgement from Ripple, Garlinghouse humorously referred to speculating on the potential outcomes, like betting odds in Vegas. The CEO criticised the SEC for losing sight of their mission to protect investors, questioning who the agency is actually safeguarding in this case.
I think the SEC in my opinion has lost sight of their mission to protect investors and the question is who are they protecting in this journey.
He indicated that the court will decide on the appropriate remedies, a decision which Ripple welcomes. He highlighted the need to consider investor harm and the applicability of securities laws, including exemptions for certain types of investors. Garlinghouse sees this situation as beneficial not just for Ripple but for the entire industry, viewing the SEC’s recent legal setbacks as a check on their power in the U.S.
Finally, the Ripple CEO expressed optimism that this case could mark the beginning of a more favourable environment for the growth of the blockchain industry in the U.S., the world’s largest economy.