Brad Garlinghouse, the CEO of Ripple, has sharply criticized the US Securities and Exchange Commission (SEC) for hypocrisy in its approach to crypto regulations. His remarks follow recent developments in the SEC’s lawsuit against Binance, where the regulatory body sought to modify its initial complaint.
It’s getting fiery here! Here’s more on this.
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 previously classified several crypto assets as securities.
Garlinghouse criticized the SEC for its inconsistent and confusing regulatory practices. He pointed out a contradiction between SEC Chair Gary Gensler’s statements that the rules are clear and the SEC’s inability to enforce them consistently.
In a post on X, Garlinghouse expressed his frustration.
The SEC’s action aims to prevent 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 noted its plans to alter the complaint to address “Third Party Crypto Asset Securities” concerns, thus avoiding an immediate court ruling.
Binance argued that the SEC’s decision to amend the complaint suggests that the possible changes are not limited to the tokens initially mentioned in the case.
Garlinghouse’s comments highlight the growing frustration within the cryptocurrency industry over regulatory uncertainty. He has consistently emphasized the need for clear and consistent regulations to support industry growth and innovation. Ripple’s ongoing legal battle with the SEC, focusing on whether XRP is a security, led to a landmark ruling in July 2023.
Other companies, including Coinbase, are also pushing for regulatory clarity to create a more stable environment for the crypto industry.
Legal experts have also voiced their opinions on the SEC’s recent actions. Ripple’s Chief Legal Officer Stuart Alderoty noted that the move leaves tokens vulnerable in other cases, arguing that the agency cannot disregard these tokens in one case while pursuing them in another. Jake Chervinsky, Chief Legal Officer at Variant Fund, echoed this sentiment, viewing the SEC’s move as a litigation tactic rather than a policy shift.
Also Read: Ripple News: Why is XRP Price Up Today?
The crypto world is in turmoil. Share your thoughts on the SEC’s latest move.
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