According to CryptoPotato, Ripple's CEO, Brad Garlinghouse, has criticized the US Securities and Exchange Commission (SEC) for its lack of appropriate crypto regulations. He compared the SEC's efforts unfavorably to those of other countries and regions, such as Japan, the United Kingdom, and the European Union, which have implemented regulatory frameworks. Garlinghouse even suggested that typing on the AI-powered chatbot ChatGPT would be more efficient than the SEC's current efforts.
Garlinghouse believes that SEC Chairman Gary Gensler has been hostile toward the digital asset sector, imposing 'regulation through enforcement.' He suggested that the Commodity Futures Trading Commission (CFTC) would be a more natural regulator for the industry. The CFTC oversees the trading of commodity futures, options, and swaps, while the SEC focuses on securities markets.
Ripple and the SEC have been engaged in a legal battle since December 2020, when the SEC sued Ripple for allegedly selling XRP in an unregistered security offering. Ripple gained an upper hand in the lawsuit last year, with key partial victories. Federal Judge Analisa Torres ruled that XRP sales to retail investors did not constitute an offer of investment contracts, and the SEC's intention to appeal the initial decision was dismissed. Ripple's CEO and Executive Chairman were also cleared of all accusations brought by the SEC.
The trial between Ripple and the SEC is set for April 23, 2024. The SEC must file its brief with respect to remedies by March 13, 2024, and Ripple must file its opposition by April 12, 2024. The regulator recently requested an order compelling Ripple to hand over its financial statements for 2022-2023 and its post-Complaint contracts governing 'Institutional Sales.' Ripple's attorneys filed a Motion for Extension of Time, asking for the deadline for a response to be extended to January 19.
The outcome of the lawsuit is highly anticipated by the crypto community, as it could significantly impact XRP's price and the broader market. A decisive win for Ripple may trigger an XRP price rally and overall market boom, while the opposite scenario could harm the sector and lead to the implementation of stringent rules.
