Ripple is firing back at the Securities and Exchange Commission after years of legal battles. The crypto company isn’t mincing words following its recent legal victory, when the SEC dropped its appeal in the XRP case.
Finally, some breathing room for the embattled firm that just paid a $125 million penalty for institutional sales while dodging the bigger bullet – XRP sales on exchanges weren’t deemed securities violations.
CEO Brad Garlinghouse didn’t hold back, labeling the SEC’s aggressive stance a “war on crypto.” He claims the agency’s overzealous approach cost XRP holders a staggering $15 billion. Ouch.
The company argues the SEC lacks authority over most digital assets and is basically making up rules as it goes along.
The heart of Ripple‘s argument? The SEC’s interpretation of the Howey test is way too expansive. They’re bending a decades-old rule to fit their crypto crackdown agenda.
Typical government overreach, trying to force square pegs into round holes. Instead of regulatory gymnastics, Ripple wants Congress to establish clear frameworks.
Leave it to the lawmakers, not unelected bureaucrats. The company argues agencies shouldn’t unilaterally expand their powers just because they can. That’s not how democracy works, folks.
When it comes to staking and yield-generating activities, Ripple insists algorithmic rewards aren’t securities. There’s no investment contract when everything’s running on code.
Just because something generates value doesn’t make it a security. The case might mark a turning point for crypto regulation.
After the SEC’s retreat, multiple companies filed for XRP ETF approval, and the token’s price jumped 10%. This significant price increase occurred as XRP rose from 2.29 to $2.51 following the announcement.
The ruling that open market sales of XRP weren’t securities violations established an important precedent for other cryptocurrencies facing similar regulatory challenges.
Ripple continues pushing for a focus on fraud prevention using existing laws rather than creating confusing new classifications. Clearer government regulations tend to provide market certainty and encourage greater investment in cryptocurrencies.
They want straightforward market guidance, not regulatory whack-a-mole.
Maybe after this saga, we’ll see a more collaborative approach between the SEC and crypto firms. But don’t hold your breath.
