In a series of tweets, Ripple CTO David Schwartz criticized the actions of the U.S. Securities and Exchange Commission (SEC). He noted that due to recent events in the cryptocurrency industry, there are suggestions that regulators have shown incompetence or a desire to protect market insiders.
“If you don’t want the founders, insiders and early investors to make a profit and then shift a significant portion of the losses due to litigation to a large number of retail investors, then don’t listen to the SEC. I think it may just be incompetence,” he tweeted.
The head of Ripple questioned the motivation of the organization behind the recent regulatory measures in the industry. “If the SEC is an organization protecting American investors, imagine what would happen if they tried to harm them,” Schwartz joked.
The specialist expressed disappointment about the SEC’s application of the Howey test. According to him, it makes no sense to try to determine whether Ethereum (ETH) is an unregistered security.
Some members of the XRP community have also expressed disappointment about what is happening in the industry and SEC Chairman Gary Gensler. Many users stated that his actions and words in every possible way slow down the progress of the development of blockchain technology and cryptography. Some also called him an incompetent leader who is “lazy” and does not want to properly understand the issue.