News View Non-AMP

Ripple CTO and SEC Director Clash on Exchange Regulation; Here’s the Heated Debate

Published by
Qadir AK

Ripple Labs’ David Schwartz, who holds the Chief Technology Officer (CTO) position, has voiced his frustration over former Securities and Exchange Commission (SEC) division director Marc Fagel’s viewpoints on crypto exchange oversight. 

The digital currency community has been fervently debating the potential ramifications of a ruling by Judge Analisa Torres in the ongoing SEC vs Ripple legal battle. The court’s decision that the digital token XRP cannot be classified as security has provided a tailwind for further secondary market sales of XRP. 

Fagel’s Take on Crypto Regulation

Marc Fagel jumped into the fray with a statement that challenged the ruling’s impact on regulatory authority. He suggested that if sales via crypto exchanges are not deemed securities sales, the SEC might lack the jurisdiction to regulate such exchanges. 

Fagel sarcastically hinted at the prospects of Congress crafting a reasonable crypto regulation system in the near future. Moreover, he suggested that with less oversight in the crypto sphere, the SEC could allocate resources to protect investors who genuinely seek protection. 

Schwartz’s Scathing Rebuttal

In response to Fagel’s remarks, Schwartz delivered a fiery counterargument, describing Fagel’s comment as misleading and incorrect. He pointed out that the courts are not responsible for regulating crypto exchanges, and the SEC has exhibited a lack of initiative toward doing the same. 

Schwartz further argued that the Coinbase scenario illustrated the SEC’s reluctance to regulate. In his view, the only action courts have taken is to punish exchanges that exist and try to abide by the law. 

The Ripple CTO painted an alternate picture of the ideal regulatory process, which begins with public opinion pushing Congress to regulate an area. If Congress does not heed the call, the resultant issues and negative consequences would eventually pressure them to take action. This approach, Schwartz believes, could eventually lead to the creation of clear regulations that people can understand and comply with.

What are your thoughts on this fiery clash?

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

Recent Posts

BBB Warns of AI Voice Scams Just as Graphite Network Launches Phonebook MVP That Offers a Web3 Fix

On June 25th, 2025, the Better Business Bureau (BBB) issued an urgent alert about a…

July 1, 2025

Elon Musk’s xAI Bags $10 Billion While Trump Fires Shots on Social Media

Elon Musk’s AI startup xAI has raised a massive $10 billion in new funding, giving…

July 1, 2025

Best Crypto to Buy This Summer, Ethereum (ETH) Runs Hot, But This $0.03 Token Looks Sharper With 2x Upside

With Ethereum (ETH) heating up again in early summer activity, large-cap investors are doubling down…

July 1, 2025

Top New Meme Coin of 2025? Pepe Coin (PEPE) Competitor Picked for a Top 10 Status on CoinMarketCap

Meme coins have always been a wild ride. From Dogecoin turning jokes into market caps…

July 1, 2025

Did the Senate Pass the Trump’s Big Beautiful Bill

As of this afternoon, the United States Senate remains locked in a marathon voting session…

July 1, 2025

Cats Fishing: Status Network’s First Mobile Fishing Game Turns Lore and Occult Mysteries Into Playable Myth

Whisker Woods invites players to cast, catch, and ascend in a mobile-first adventure launching this…

July 1, 2025