Regulation
Ripple CEO Brad Garlinghouse Slams SEC’s Inconsistent and Confusing Regulatory Practices
Brad Garlinghouse, CEO of Ripple, has harshly criticized the U.S. Securities and Exchange Commission (SEC) for hypocrisy in its approach to cryptocurrency regulationsHis comments follow recent developments in the SEC’s lawsuit against Binance, in which the regulator sought to amend its initial complaint.
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Bold Moves Against Binance
On Tuesday, the SEC and the defendants — Binance Holdings Ltd., BAM Trading Services Inc., BAM Management US Holdings Inc., and Changpeng Zhao — filed a joint response to the court order. The SEC announced its intention to amend its complaint to address issues related to “Third-Party Cryptocurrency Securities,” having previously classified several crypto assets as securities.
Criticizing the SEC as “inconsistent”
Garlinghouse criticized the SEC for its inconsistent and confusing regulatory practices. He pointed out a contradiction between SEC Chairman Gary Gensler’s statements that the rules are clear and the SEC’s failure to enforce them consistently.
In a post on X, Garlinghouse expressed his frustration.
The SEC’s action seeks to forestall a courtroom ruling on whether specific cryptocurrencies, including SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI, are securities under the Howey test. The SEC’s filing outlined its plans to amend the complaint to address concerns about “Third Party Cryptocurrency Securities,” thereby avoiding an immediate courtroom ruling.
Binance argued that the SEC’s decision to amend the complaint suggests that potential changes are not limited to the tokens initially named in the case.
Growing industry frustration
Garlinghouse’s comments highlight the growing frustration in the cryptocurrency industry with regulatory uncertainty. He has consistently stressed the need for clear and consistent regulations to support the industry’s growth and innovation. Ripple’s ongoing legal battle with the SEC, centered on whether XRP is a security, resulted in a landmark ruling in July 2023.
Other companies, including Coinbase, are also pushing for greater regulatory clarity to create a more stable environment for the cryptocurrency industry.
Legal experts intervene
Legal experts have also weighed in on the SEC’s recent actions. Ripple’s Chief Legal Officer Stuart Alderoty noted that the move leaves the token vulnerable in other cases, arguing that the agency cannot ignore the token in one case while pursuing it in another. Jake Chervinsky, Chief Legal Officer of Variant Fund, echoed this sentiment, viewing the SEC’s move as a litigation tactic rather than a policy shift.
Read also: Ripple News: Why Did XRP Price Surge Today?
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