Yesterday, Brad Garlinghouse, CEO of Ripple Labs appeared on TV and his statements about the SEC have been provocative. According to Garlinghouse “The SEC has lost its way.” This is the comment that explains the desperate persecution carried out by the United States Securities and Exchange Commission against Ripple.
Within the framework of a new motion filed by Ripple before the courts to make a final decision without going to trial, XRP rose 17%. This occurred a few hours after Garlinghouse, in an interview on the Fox Business news network, attacked the SEC and spoke of the body’s wrongdoing.
Subsequently, in less than 24 hours, XRP increased its price by 25% to point to a monthly increase of 41%. Amid growing interest from investors. Even as the trial against Ripple for the sale of $1.3 billion in unregistered securities takes place. Garlinghouse’s statements that the SEC has lost its way seem not to be out of place.
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“The SEC has lost its way”
What started out as a normal court proceeding would become one of the crypto world’s biggest battles for economic freedom. In 2020 a battle began that continues to this day and is close to ending.
“As the summary judgment filings became public, people realized that maybe the SEC really was overreaching,” Garlinghouse said during the interview. “They’re not really following true allegiance to the law, that’s a quote from the judge in this case.” Of course, we cannot forget the recent disputes between the Securities and Exchange Commission and the US Commodity Futures Trading Commission (CFTC) have revealed this. If we review the recent actions, it seems that the SEC has lost its way.
According to members of the CFTC, the SEC has been desperate to gain full jurisdiction over cryptocurrencies. However, this has not been clarified, since the CFTC was initially designated to regulate digital assets, according to the resolutions issued by the executive when digital currencies began to appear.
“We believe that you have the necessary information to make the decision and we believe that it is abundantly clear that the SEC is grossly overstepping its authority,” Garlinghouse said of the recently filed motion. If approved, the ruling in favor of Ripple Labs would set an important precedent for the industry.
Garlinghouse and Ripple Labs are not alone in denouncing other than the CFTC that the SEC has overreached. In fact, US Magistrate Judge Sarah Netburn, who oversees the SEC’s case against Ripple Labs, openly criticized the regulator’s approach. According to Netburn, the SEC has acted in a hypocritical manner during the litigation and, moreover, its tactics have been questionable, the judge claims.
«The first step to determine to be a value, is to have an investment contract. Our point is that Ripple has no contract. Who is the contract with? It’s not a written contract, it’s not an oral contract, it’s not an implied contract.”
The persecution against Ripple Labs is very close to ending, but the outcome is still uncertain. Although Garlinghouse awaits the ruling in favor of his company. There has never been a judgment of such magnitude to date regarding cryptocurrencies. On one occasion, the CEO of Ripple Labs declared that this fight was “for the entire industry”, not just for XRP.