Ripple CEO Brad Garlinghouse has recently expressed his view that it would be “absurd” to accuse a judge of applying the law in good faith in the SEC’s case against the company.
He has pointed out that the SEC created “this mess by imagining itself as a cop in the battle for cryptocurrency when it did not have the authority to do so.”
He has insisted that “sensible legislation, not forced regulation” is the only way to set clear rules and protect retail investors.
In July 2023, Judge Analisa Torres ruled that selling XRP directly to institutional investors violated SEC rules, but offerings to retail investors on exchanges did not.
The agency filed an updated lawsuit against Terraform Labs and its CEO Do Kwon, claiming that the verdict from the case against Ripple “creates an artificial distinction between the expectations of institutional and retail investors.”
Ripple General Counsel Stuart Alderothy also criticized the move, comparing attempts to not classify XRP as a security to a person who believes in flat Earth.
