- Brad Garlinghouse, Ripple’s CEO, criticizes the SEC for inconsistent enforcement of cryptocurrency regulations.
- The legal battle between Ripple and the SEC, initiated in 2020, is nearing a crucial phase, with potential appeals anticipated.
Brad Garlinghouse, CEO of Ripple, has criticized the U.S. Securities and Exchange Commission (SEC) for what he describes as inconsistent enforcement of cryptocurrency regulations.
This critique aligns with recent developments in the SEC’s legal actions against Binance, where the regulatory body proposed adjustments to its original lawsuit.
More evidence of SEC hypocrisy.
Chair Gensler testifies the rules are clear, yet his SEC can't figure them out and applies them haphazardly, festering more industry confusion.
A political agenda and/or bad faith litigation tactics. Def not a “faithful allegiance to the law". https://t.co/iX8IdvaW92
— Brad Garlinghouse (@bgarlinghouse) July 30, 2024
Garlinghouse argues that despite SEC Chair Gary Gensler’s assertions that the cryptocurrency regulations are clear, the SEC’s practices indicate otherwise. He suggests that these inconsistencies are causing confusion within the cryptocurrency sector.
“Chair Gensler testifies the rules are clear, yet his SEC can’t figure them out and applies them haphazardly, festering more industry confusion.”
The SEC recently announced its intention to amend its lawsuit against Binance to address issues related to “Third Party Crypto Asset Securities.” This amendment aims to delay the court’s decision on whether the tokens involved are securities. Binance has noted that this move by the SEC could imply broader implications for the case beyond the tokens directly involved.
The @SECGov has retracted its request for the court to classify tokens like @solana, @Cardano, and @0xPolygon as securities in its lawsuit against @binance. pic.twitter.com/QnTGxA4w7V
— Cointelegraph (@Cointelegraph) July 30, 2024
Meanwhile, former President Donald Trump has voiced opposition to Gensler’s regulatory approach. At the Bitcoin Conference 2024, Trump stated his intent to replace Gensler if he returns to office, criticizing Gensler’s anti-crypto policies.
Trump also mentioned his plan to nominate a new SEC chair who would foster innovation and support the development of digital assets in the U.S. This view is supported by other prominent figures in the cryptocurrency industry, including billionaire Mark Cuban, who has accused Gensler of regulatory overreach.
The legal dispute between Ripple and the SEC, which started in December 2020, is nearing a decisive moment. In 2023, a judge ruled that Ripple’s digital currency, XRP, does not fulfill all the criteria of the Howey Test to be classified as a security when sold to the general public. The sales of XRP to institutional investors, however, are still under scrutiny.
