The U.S. Securities and Exchange Commission (SEC) has prioritized “politics and power” over creating “sound politics,” said Ripple CEO Brad Garlinghouse. said in a July 15 interview with Bloomberg.
Reiterating his criticism of the regulatory watchdog, Garglinghouse said that instead of providing clear rules for crypto, the SEC had confused the market. He remarked:
“…they (SEC) knew there was confusion and they actually did things that they knew would increase the confusion and the only reason to do that is that that confusion is masquerading as the power of the SEC”
The decision in the Ripple case, which concluded that XRP is not in itself a security, cleared up some of the confusion sown by the SEC, he said. The decision provided much-needed clarity to the entire US market and is therefore “a win for the entire crypto industry as well,” he said.
Garglinghouse further stated that the Ripple decision cut short the “overreach” of SEC Chairman Gary Gensler, who asserts that most cryptocurrencies are securities. He added:
“Ironically, no other country on the planet thought XRP is a security, but it’s good to have that clarity now for the market here in the United States.”
Ripple resisted a “bully”
Garlinghouse underscored the significance of the Ripple ruling, saying it’s the “first time the SEC has lost a crypto case.” In fact, he said the SEC has gone largely unchallenged because the regulator is targeting smaller companies.
“I think the SEC was a bully and went after weak players who couldn’t mount a proper defense.”
As a crypto giant, Ripple had the “courage” and “courage” to stand up to the SEC, Garlinghouse said. The crypto industry ‘needed someone to fight back’ because the SEC used regulation through enforcement as its primary tool, which is ‘not a good way to create a market “, he noted.
According to Garlinghouse, the SEC is not doing the hard work that other countries in Europe and beyond have put in place to provide clear crypto rules. Regulatory clarity could help investors and entrepreneurs, he noted, adding that:
“…even now, the SEC is more focused on lawsuits than on the job.”
SEC appeal could take years
According to some experts, like John Reed Stark, former head of internet enforcement at the SEC, the Ripple ruling is “ripe for appeal” and likely to be overturned. However, Garlinghouse said it could take years for the SEC to file an appeal.
Additionally, Garlinghouse is “very optimistic” that even though the SEC has filed an appeal in the Second Circuit Court, Ripple will win and solidify the recent judgment. His optimism is based on the fact that the SEC overstepped its authority while claiming that most cryptocurrencies are securities.