The SEC Faces Criticism from Ripple’s CEO Over Cryptocurrencies
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- Ripple CEO Brad Garlinghouse criticizes the SEC unfair approach to crypto regulation.
- The SEC's ongoing legal battle with Ripple could reshape how digital assets are regulated under U.S. law.
- Ripple’s Chief Legal Officer highlights inconsistencies in the SEC handling of major crypto lawsuits.
Ripple CEO Brad Garlinghouse has accused the U.S. SEC for unfair regulatory practices in crypto. Garlinghouse expressed his view on the X platform, expressing the hypocrisy within the SEC. He challenged SEC Chairman Gary Gensler's claims of clear regulation due to the agency's inconsistent actions that have caused confusion in the industry. Garlinghouse suggested that these actions indicate a political agenda or a strategy of malicious litigation rather than a genuine commitment to the law.
Ripple CEO Criticizes SEC's Regulatory Action
On Tuesday, the SEC and the defendants—Binance Holdings Ltd., BAM Trading Services Inc., BAM Management US Holdings Inc., and Changpeng Zhao—submitted a joint response to the court’s order. The SEC announced its intention to amend its complaint to address issues concerning Third Party Crypto Asset Securities, having recently classified several crypto assets as securities.
With the ongoing legal conflict between the two parties, the SEC accused Ripple together with its executives Brad Garlinghouse and Christian Larsen, of selling unregistered securities, specifically XRP, worth over $1.3 billion to the public through their company.
The SEC’s motion to amend is due within 30 days of the court’s scheduling order, providing a short period of rest for investors in SOL, ADA, and MATIC. Despite the SEC’s latest move, Garlinghouse’s critique underscores concerns within the crypto industry about regulatory clarity and consistency with Gary Gensler in control.
Ripple’s Chief Legal Officer Stuart Alderoty clearly highlighted in his X account that when the judge in the Binance lawsuit signaled that the ten tokens the SEC mentioned in the lawsuit might not be securities, the agency ignored. Furthermore, he said that the same ten digital assets were left out to dry in the Coinbase suit, further solidifying claims that the regulator is regulating the crypto market.
What's Next After the Battle for U.S. Crypto Rules?
While the legal dispute between Ripple and the SEC continues, its conclusion could have greater effects on the future of cryptocurrency regulation in the United States. The case remains watched by both the crypto community and regulatory bodies, as it may set a way in which digital assets are treated under U.S. law.
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