Ripple CEO Brad Garlinghouse emphasizes the need for ongoing battle to achieve regulatory clarity as SEC lawsuit nears its conclusion.
Ripple CEO Brad Garlinghouse has expressed his belief that the legal battle between Ripple and the United States Securities and Exchange Commission (SEC) is nearing its end but emphasized that the fight for regulatory clarity in the cryptocurrency industry must continue. Garlinghouse shared his thoughts in a video posted on Twitter, where he accused the SEC of acting in “bad faith, plain and simple.”
The unsealing of the Hinman Documents on June 13 as part of the ongoing lawsuit provided the backdrop for Garlinghouse’s remarks. He discussed the timeline of the lawsuit and expressed his frustration with the SEC’s actions. Garlinghouse highlighted that the documents suggested the SEC intentionally created confusion about the rules and exploited that confusion through enforcement.
Garlinghouse strongly criticized the SEC, characterizing their actions as a clear example of bad faith. He contended that this attitude has been evident from the beginning of the lawsuit, which was initially filed just “days before Christmas” in December 2020, giving it a “very grinch-like touch.” He accused the SEC of prioritizing politics over people and pursuing power over sound policy.
Ripple CEO Accuses SEC Of Stifling Innovation And Cryptocurrency Industry In The US
The Ripple CEO maintained that he had answered every question posed by the SEC before the lawsuit was filed, and at no point was it suggested that XRP was a security. He argued that the SEC’s intent is to stifle innovation and the cryptocurrency industry in the United States. Garlinghouse emphasized that the issue at hand extends beyond any specific token or blockchain, reflecting the SEC’s overall stance toward the crypto industry.
According to Garlinghouse, the SEC’s enforcement actions against crypto players contradict their professed openness and calls for registration. He claimed that the SEC has persistently enforced actions against crypto players while providing misleading guidance. He asserted that the documents indicate a lack of agreement among senior SEC officials regarding the law and alleged that Bill Hinman was advised to further confuse the public about crypto regulations.
The revealed documents also suggested that Hinman’s statement that Ether is not a security raised concerns among editors about the agency’s ability to adopt a different position on Ether in the future. However, Garlinghouse argued that, at worst, the documents demonstrated that Hinman deliberately disregarded the law and attempted to establish new rules.
Garlinghouse underscored the need for the industry to unite, as he believes the SEC may take action against more crypto firms in the future. While he acknowledged that Ripple’s lawsuit is reaching its conclusion, he stressed that for many others, the fight for clarity is just beginning, urging the industry to continue its efforts in seeking regulatory clarity.
Garlinghouse’s remarks come shortly after the SEC filed a lawsuit against crypto exchange Binance on June 5 for allegedly offering unregistered securities. The following day, the regulator took similar action against Coinbase, further highlighting the lack of clarity in the industry.