Summary:
- SEC Criticism: Ripple CEO Brad Garlinghouse criticizes the SEC for inconsistent regulatory practices, particularly regarding its amended complaint against Binance.
- Legal Context: The SEC’s intention to address issues concerning “Third Party Crypto Asset Securities” has been met with skepticism from industry leaders.
- Call for Clarity: Garlinghouse stresses the need for consistent and transparent regulations to foster industry growth and innovation.
Ripple CEO Brad Garlinghouse has publicly criticized the U.S. Securities and Exchange Commission (SEC) for what he perceives as inconsistent regulatory practices within the cryptocurrency space. His comments come in response to the SEC’s recent intention to amend its complaint against Binance Holdings Ltd., BAM Trading Services Inc., BAM Management US Holdings Inc., and Changpeng Zhao (CZ), addressing issues related to “Third Party Crypto Asset Securities.”
On Tuesday, the SEC and the defendants submitted a joint response to a court order, with the SEC indicating plans to revise its complaint. The agency had previously classified several crypto assets as securities, a stance that has been met with controversy and confusion within the industry.
Garlinghouse took to the social media platform X to express his concerns, highlighting a perceived contradiction between SEC Chair Gary Gensler’s statements and the agency’s actions. He criticized the SEC’s inconsistent application of regulations, which he believes fosters confusion rather than clarity.
“More evidence of SEC hypocrisy. Chair Gensler testified the rules are clear, yet his SEC can’t figure them out and applies them haphazardly, festering more industry confusion,” Garlinghouse stated. He further accused the SEC of pursuing “a political agenda and/or bad faith litigation tactics,” rather than adhering to a “faithful allegiance to the law.”
Ripple, along with other companies like Coinbase, has been actively seeking regulatory clarity to ensure compliance in the rapidly evolving cryptocurrency landscape. The company’s legal battle with the SEC, focusing on whether XRP is a security, led to a landmark ruling in July 2023. Garlinghouse continues to advocate for a more predictable and transparent regulatory environment to support innovation and growth in the crypto industry.
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