- Ripple CEO Brad Garlinghouse has sharply criticized the United States SEC for its abrupt change in stance regarding its legal case against Binance.
- He labeled the SEC’s enforcement as inconsistent, citing its recent move to withdraw its request to classify several cryptocurrencies as securities.
- Garlinghouse’s remarks have sparked discussions about the need for clear and transparent regulatory frameworks in the crypto industry.
Brad Garlinghouse criticizes the SEC for its unpredictable regulatory actions, urging for a more transparent and consistent approach.
SEC Retracts Its Request in Binance Case
The U.S. Securities and Exchange Commission recently withdrew its petition to classify Solana (SOL), Cardano (ADA), and Polygon (MATIC) as securities in its lawsuit involving Binance. This move has been viewed by the crypto community and industry leaders as indicative of the SEC’s inconsistent regulatory enforcement. Criticizing this step, Ripple CEO Brad Garlinghouse said this demonstrated the regulatory body’s lack of transparency.
Back-and-Forth Legal Maneuvers
Garlinghouse took issue with the SEC’s decision to amend its complaint rather than pursue a ruling on the classification of these tokens. He argued that this behavior is evidence of the agency’s unpredictability and pointed out that despite claiming clear rules under the leadership of Gary Gensler, the SEC has applied these rules arbitrarily. He called for a more predictable and principled regulatory framework to clear up the growing industry confusion.
Industry Reaction and Support for Ripple’s Stance
Supporting Garlinghouse’s criticisms, legal expert John E. Deaton also questioned the SEC’s consistency. He noted that if Gensler’s rules were indeed clear, then withdrawing from their application would not have been necessary. Deaton suggested that this inconsistency adds grounds for Gensler’s possible resignation, emphasizing the financial harm caused to retail investors by SEC’s controversial decisions.
Allegations Against Gensler’s Leadership
Brad Garlinghouse and John E. Deaton have been outspoken against Gary Gensler’s approach, accusing the SEC Chair of exacerbating regulatory confusion and causing significant financial damage to retail investors. Deaton even cited instances where Gensler allegedly lied under oath, further fueling arguments for his removal.
Conclusion
The ongoing disputes between the SEC and major cryptocurrency stakeholders like Ripple underscore the urgent need for a transparent and coherent regulatory landscape. Brad Garlinghouse’s recent criticisms have shone a spotlight on the inconsistencies of the SEC’s approach, advocating for a more structured framework that can support the growth and stability of the cryptocurrency market.
