The legal battle between Ripple Labs and the SEC has reignited concerns over the agency’s regulatory approach. Ripple CEO Brad Garlinghouse and other industry leaders criticize the SEC’s lack of clear guidelines and aggressive enforcement tactics.

Newly appointed Crypto Czar David Sacks echoed these concerns, stating that many crypto founders remain uninformed about compliance requirements yet face legal action. His remarks come amid optimism that President Donald Trump’s administration may create a more favorable regulatory environment.

The ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has been criticized by Ripple’s CEO, Brad Garlinghouse, and other crypto industry leaders.

Ripple Lawsuit and Its Industry Impact
The SEC sued Ripple in 2020, alleging XRP was an unregistered security. Ripple denies this, arguing the SEC’s stance lacks clarity. The case could set a precedent for digital asset regulation, with many accusing the SEC of “regulation by enforcement.”

A Call for Regulatory Clarity
David Sacks’ appointment signals potential change. He criticized the SEC for not providing clear rules while quickly taking legal action. “Founders need clear guidance, not lawsuits,” he stated.

With the new administration, many hope for regulatory reforms to replace litigation-driven oversight with a more transparent, predictable framework.