Ripple Labs is addressing the U.S. Securities and Exchange Commission (SEC) and calling out the regulatory agency for what the firm says is inconsistent enforcement actions.
In its Q2 2023 XRP Markets Reports, Ripple Labs slams the SEC, saying that its policies never actually protect consumers given the regulator was absent during FTX’s high profile multibillion-dollar meltdown in 2022.
Ripple also says that the SEC’s actions show that it’s 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 the retail consumer.
When the SEC sued Ripple in 2020, $15 billion in XRP market cap was eviscerated, at the expense of countless XRP holders. If the SEC was truly the lawful cop 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 into bankruptcy, leaving the retail trader holding the bag while the SEC collected fines so it could grab headlines?”
The SEC first sued Ripple Labs in 2020 under allegations the firm was selling XRP as an unregistered security. In July, a judge made 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 Chair 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 in furtherance of its own quest for political power.
Mr. Gensler’s oft repeated statement that all crypto tokens except Bitcoin are securities subject to the SEC’s jurisdiction has now been firmly debunked.”
XRP is trading for $0.681 at time of writing, a 1.3% decrease during the last 24 hours.
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