Ripple CTO David Schwartz has slammed former SEC’s regional director over his comments about crypto exchange regulation.
David Schwartz, Chief Technology Officer (CTO) at Ripple Labs, has slammed former SEC divisional director Marc Fagel following his comment about crypto exchange regulation.
For context, crypto enthusiasts took to Twitter to discuss the implications of Judge Analisa Torres’ ruling on the SEC v. Ripple lawsuit. As reported, the court ruled XRP itself is not a security. Thus, prompting XRP secondary market sales to continue.
Reacting, Fagel argued that since the court concluded that secondary markets sales are not securities, then the SEC has no authority to regulate crypto exchanges.
Ripple CTO Slams Fagel
In response, Ripple’s CTO slammed Fagel’s remark as “bulls**t.”
This is such bullshit. The courts can’t regulate crypto exchanges and the SEC isn’t even trying to regulate crypto exchanges. They proved that with Coinbase. All courts can do is punish exchanges for existing and trying to comply with the laws.
What’s supposed to happen is that… https://t.co/cuoR9UiKHa
— David “JoelKatz” Schwartz (@JoelKatz) July 15, 2023
According to Schwartz, the court cannot regulate crypto exchanges, adding that the SEC is also not attempting to regulate these trading platforms.
Ripple CTO highlighted San Francisco-based crypto exchange Coinbase as a case in point. It bears mentioning that the world’s second-largest exchange by 24-hour trading volume sued the SEC in April 2023.
The move is part of Coinbase’s attempt to compel the SEC to respond to its petition, aiming for a rule specific to digital assets.
Courts Can Only Punish Exchanges, Not Regulate
Meanwhile, Schwartz highlighted the function of courts in crypto regulation. Per Ripple CTO, courts can only punish crypto exchanges for “trying to comply with the law.”
Furthermore, Ripple’s CTO questions the implications of Congress’ negligence in regulating the crypto industry, despite multiple requests.
He said if Congress continues ignoring these calls, bad things will happen. However, if lawmakers provide clear rules, then the United States crypto space can have sensible regulations that investors and exchanges can understand and comply with.
Congress Urged to Regulate Crypto
Following Judge Analisa Torres’ decision on the SEC v. Ripple lawsuit, many people have been calling on Congress to regulate the crypto industry.
As reported today, US Rep. Mike Flood praised XRP and Ripple for their victory over the SEC while urging Congress to take action.
