The ongoing legal battle surrounding Ripple’s XRP cryptocurrency has sparked deep concern over the regulatory landscape within the crypto industry. However, key personas in the crypto space, including Chris Larsen, executive chairman of Ripple, as well as XRP lawyers, remain hopeful that the enforcement-based approach to regulation employed by the SEC might soon come to an end.
Judges’ Seeing SEC’s Stance in Inconsistent Towards Crypto Industry
Recently, the SEC has faced severe criticism from the court due to multiple lawsuits. In a notable case involving Grayscale, the judges deemed the SEC’s actions as “arbitrary and capricious.” This scrutiny has shed light on the SEC’s enforcement of regulations within the crypto industry.
Similarly, Judge Netburn, handling the Ripple XRP lawsuit, went so far as to use the word “hypocrisy” when characterizing the SEC’s inconsistent positions. Eventually, the judges overseeing these legal cases haven’t been too happy with the U.S. Securities and Exchange Commission (SEC).
SEC’s Regulatory Approach is On The Verge of the Horizon
On September 7, Chris Larsen expressed optimism regarding the potential end of the SEC’s “regulation by enforcement” policy. He highlighted that courts are increasingly rejecting the perceived unfair treatment of the crypto industry by the SEC. Larsen urged Congress to take a leading role in shaping cryptocurrency policy moving forward.
During an interview with Bloomberg, Chris Larsen attributed the hindered progress of San Francisco in becoming the “blockchain capital of the world” to the U.S. government and the SEC, asserting their hostile policies as responsible.
XRP lawyer Bill Morgan shares the same viewpoint as Larsen, believing that the SEC’s strategy is ineffective due to their frequency of losing court cases. Morgan strongly criticizes the SEC’s approach as being highly detrimental. Some judges have criticized the SEC for its allegedly arbitrary and nonsensical actions.
Ripple’s leadership remains unwavering in their confidence regarding the ongoing legal battle with the SEC. The company asserts that the SEC’s lawsuits lack a clear rationale and fail to address whether current regulations adequately govern the cryptocurrency realm.