Ripple chairman Chris Larsen took a defiant stance against the U.S. Securities and Exchange Commission (SEC) in a resounding call for regulatory change in the cryptocurrency industry. Recent court rulings have dealt significant blows to the SEC’s approach, with federal judges calling their claims “arbitrary and capricious.” In this burgeoning environment, Larsen and XRP lawyers sounded alarmed, urging the US Congress to intervene and put an end to the SEC’s unreasonable lawsuits. As the battle between Ripple and the SEC continues, this article examines the latest developments and explores the potential implications for the broader crypto market. Here are the details…
Striking exit from Ripple executive to SEC
Ripple’s chairman of the board, Chris Larsen, made a striking statement against the US Securities and Exchange Commission (SEC) and its controversial enforcement policy towards cryptocurrencies. Larsen’s comments follow recent court rulings criticizing the SEC’s approach, calling it “arbitrary and capricious” in the Grayscale case, and accusing it of “hypocrisy” in the Ripple XRP case. Larsen didn’t hold back, stating that he hopes these latest court rulings will mean “the beginning of the end” for the SEC to regulate with its sanctions policy.
I sincerely hope we’re seeing the beginning of the end of the SEC’s policy of regulation by enforcement. The Courts are rejecting it, and now it’s time for Congress to take the lead on crypto policy.
Thanks @EdLudlow @technology for the chat! https://t.co/3gZOR4lq5J
— Chris Larsen (@chrislarsensf) September 6, 2023
He argued that the courts’ rejection of the SEC’s approach should serve as a clear signal for Congress to take the lead in shaping cryptocurrency policy. “I sincerely hope that we are seeing the beginning of the end of the SEC’s policy of enforcement through regulation. The courts are rejecting it, and now is the time for Congress to lead crypto policy,” Larsen stressed. Joining Larsen in his criticisms of the SEC, XRP attorney Bill Morgan complained that the SEC was constantly losing in the courts as it continued to appeal against the rulings. Morgan described the SEC’s approach as “absolutely pathetic.”
Blockchain development blocked
The crux of the problem lies in the SEC’s inability to explain the rationale behind these lawsuits and clarify whether current regulations are sufficient to govern the crypto industry. According to Larsen, this lack of clarity has had detrimental effects on the cryptocurrency market, preventing San Francisco from realizing its potential as the “Blockchain capital of the world.” In an interview with Bloomberg, Larsen pointed to both the US government and the SEC, blaming them for their hostile policies that hinder San Francisco’s progress in the blockchain industry.
The XRP market reacted to this news with a slight decline; The price of XRP has dropped 0.5% in the past 24 hours and the cryptocurrency is currently trading at $0.49. The lowest and highest price in 24 hours were recorded as $ 0.493 and $ 0.503, respectively. This development marks a critical turning point in the ongoing battle between the SEC and Ripple, and the crypto industry is watching closely as courts weigh the future of cryptocurrency regulation in the United States.
