Ripple’s executive chairman, Chris Larsen, thinks that the SEC’s strategy of regulating through enforcement has come to an end, as the courts have rejected the SEC’s approach.
Chris Larsen, the executive chairman of Ripple, and XRP lawyers have voiced their criticism of the U.S. Securities and Exchange Commission (SEC) for its approach of enforcing regulations through legal action in the crypto industry.
Federal judges in cases like the Grayscale lawsuit have labeled the SEC’s claims as “arbitrary and capricious,” and in the Ripple XRP lawsuit, Judge Netburn used the term “hypocrisy” to describe the SEC’s inconsistent stances. Larsen is urging the U.S. Congress to step in and put an end to these seemingly irrational lawsuits brought by the SEC.
The End of SEC’s Enforcement-Based Regulation
Ripple’s executive chairman, Chris Larsen, suggested on September 7 that the SEC’s practice of regulating through enforcement might come to an end, given that the courts have been rejecting the SEC’s unfair treatment of the crypto industry. Larsen also called on the U.S. Congress to step in and address the SEC and Chair Gary Gensler’s actions, which he believes are detrimental to the industry.
XRP lawyer Bill Morgan added that the SEC has been facing significant losses in court cases but continues to appeal court rulings. He described the SEC’s approach as “extremely regrettable.” Judges in various cases, including the Grayscale lawsuit, have criticized the SEC’s claims as “arbitrary and capricious.” In the Ripple lawsuit, Judge Netburn used the term “hypocrisy” to characterize the SEC’s inconsistent positions.
I surmise the SEC tide has turned.
For example, the SEC's lawsuit against Impact Theory concluded with a $5 million disgorgement (which is nothing to laugh at), but that is based on total sales of almost $30 million.
This seems a relatively kinder, gentler SEC. Almost cuddly. https://t.co/HzVFCu6xRd
— Jeremy Hogan (@attorneyjeremy1) September 6, 2023
Ripple executives are optimistic about their chances of winning against the US SEC. They believe that the SEC has not adequately explained the rationale behind its lawsuits or clarified whether existing regulations are suitable for crypto.
In a Bloomberg interview on September 6, Chris Larsen placed blame on the US government and the SEC for their unfriendly policies, which he believes have hindered San Francisco from becoming the “blockchain capital of the world.”
As for XRP’s price, it has experienced a 0.5% decline in the past 24 hours, with the current trading price at $0.49. During this period, the price ranged between $0.493 and $0.503.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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