Brad Garlinghouse said the SEC’s excessive scrutiny of the crypto industry, along with a lack of clear rules for industry companies, has led to negative consequences for retail investors. A Ripple executive has asked U.S. authorities to create legislation that would set clear rules for the digital asset industry and protect ordinary traders.
“The Commission has made a mess of things by fancying itself as the police raiding cryptocurrencies. Whereas she has no authority to do so. What has it all come down to? Consumer cases remain in bankruptcy court while the regulator holds press conferences,” Garlinghouse is outraged.
The businessman’s angry comments to the SEC come in the wake of the regulator hinting that it is appealing a recent ruling in the Ripple case. The agency is confident: the court ruled incorrectly that retail sales of the XRP token on exchanges are not related to securities.
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“It is absurd to accuse the judge of faithfully applying the law. Everyone knows that legislation, not forced regulation, is the only way to set clear rules and protect cryptocurrency retail,” Garlinghouse wrote on Twitter.
The businessman is confident that more members of Congress support his views. Garlinghouse mentioned Republican Ritchie Torres, who last year accused SEC Chairman Gary Gensler of mediocre leadership, and Patrick McHenry, who recently lobbied for a cryptocurrency bill. Ripple Labs general counsel Stuart Alderoty joined the regulator’s criticism a little later:
“Talking to someone who still doesn’t understand that a token itself is not a security is like explaining to someone living in the Middle Ages that the Earth is round,” Alderoty said.
Alderoti joked.
A few days ago, Ripple announced its intention to expand its presence in Europe by applying for licenses in the UK and Ireland.