Ripple Labs is addressing the US Securities and Exchange Commission (SEC) and calling out the regulator for what the company says are inconsistent enforcement actions.
In its Q2 2023 XRP Markets Reports, Ripple Labs slams the SEC, saying its policies never really protect consumers, as the regulator was absent during FTX’s high-profile multibillion-dollar collapse in 2022.
Ripple also says the SEC’s actions show it is actively working against retail investors.
“The SEC’s regulation-by-enforcement campaign was never the right approach to protect anyone. In fact, the SEC’s approach has only repeatedly hurt retail consumers.
When the SEC sued Ripple in 2020, $15 billion in XRP market cap was taken away, at the expense of countless XRP holders. If the SEC really was the legal agent on the crypto beat, how (and why) did it miss the FTX debacle?
If the SEC cared about the retail consumer, why did it drive BlockFi out of business, leaving the retailer to hold the bag while the SEC collected fines so it could make headlines?”
The SEC first sued Ripple Labs in 2020 under allegations that the company was selling XRP as an unregistered security. In July, a judge issued a landmark ruling in favor of XRP, declaring that Ripple’s programmatic sales of the asset did not qualify as securities transactions.
According to Ripple, the SEC’s enforcement actions have been an intimidation tactic, and SEC Chairman Gary Gensler’s claim that all digital assets except Bitcoin (BTC) are securities has been debunked.
“The SEC’s misguided campaign of regulation by enforcement has been exposed for what it is: a strategy of intimidation and misinformation to further its own quest for political power.
Mr. Gensler’s oft-repeated statement that all crypto-tokens except Bitcoin are securities under the jurisdiction of the SEC has now been firmly debunked.”
XRP is trading at $0.681 at the time of writing, down 1.3% in the past 24 hours.
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