Ripple CEO Brad Garlinghouse took to Twitter on July 23, voicing his stance on the ongoing saga between Ripple and the Securities and Exchange Commission (SEC).
The executive leveled criticism at the SEC's regulation of the crypto sector, stating that the SEC has overstepped its legal jurisdiction, leaving consumers "holding the bag in bankruptcy court."
This sentiment comes following the SEC's recent announcement to appeal a landmark ruling in favor of Ripple.
The executive's ire is rooted in a legal dispute between Ripple and the SEC, which has implications for the broader crypto industry.
The SEC recently signaled its intention to appeal a U.S. District Court ruling that sided with Ripple Labs. Judge Analisa Torres held that roughly half of Ripple's cryptocurrency XRP sales did not violate investor-protection laws. The ruling has sparked a glimmer of hope for other defendants in similar cases against the SEC, which the regulatory body now intends to quash.
Garlinghouse, however, argued against scapegoating the judiciary for their application of the law. He stressed that clear legislation, not "more regulation by enforcement," was the need of the hour for the crypto industry to move forward and protect retail investors.
In his subsequent tweet, Garlinghouse commended congressional members like Ritchie Torres and Patrick McHenry for championing this perspective.
The SEC's appeal stems from a disagreement with Judge Torres' decision, asserting that her ruling "adds baseless requirements" to the test of when an asset is a security.
They argue that her stance conflicts with the fundamental principle of federal investor protection law, which necessitates more protection for retail investors than for institutional ones.
The SEC maintained that Torres' reasoning was "impossible to reconcile" with these securities law principles, paving the way for the ongoing legal conflict.