Regulation

Ripple CEO Brad Garlinghouse Criticizes US SEC Chair Candidate Bob Stebbins

Published

4 hours ago

November 19, 2024

Ripple CEO Brad Garlinghouse has raised concerns over Bob Stebbins, a key contender for the position of U.S. SEC Chair.

Bob Stebbins, a former SEC General Counsel, has faced criticism from cryptocurrency leaders for his involvement in past regulatory decisions that many view as unfavorable to the industry.

Ripple CEO Brad Garlinghouse Take On Stebbins’ Candidacy

Ripple CEO Brad Garlinghouse has voiced his opposition to Stebbins on social media, stating it would be “unconscionable” to appoint someone tied to controversial SEC practices. He referenced Stebbins’ alleged role in crafting the Ethereum speech in 2018, which classified Ethereum as a non-security while ignoring concerns from other crypto companies.

Brad Garlinghouse emphasized the need for regulatory fairness, pointing out the SEC’s history of “picking winners and losers” in the cryptocurrency space.

This criticism comes as the crypto industry watches closely to see if the next US SEC Chair will adopt a more balanced approach ahead of Gary Gensler potential step down. Many advocates, including Brad Garlinghouse, have repeatedly called for a leader who prioritizes clarity and fairness in regulations rather than continuing enforcement-focused measures.

Ripple’s Legal Officer Shares Stance

Stuart Alderoty, Ripple’s Chief Legal Officer, also shared his reservations about Stebbins’ candidacy. In a recent statement, Alderoty suggested that Stebbins’ involvement in past SEC decisions could undermine efforts to promote regulatory transparency.

He alluded to Stebbins’ connection with former SEC Chair Jay Clayton, who initiated the lawsuit against Ripple in December 2020. The Ripple CLO has also slammed the outgoing US SEC chair Gary Gensler for trying to justify the lawsuits under Jay Clayton

Concurrently, Pro XRP lawyer John Deaton added to the concerns, calling Stebbins “Clayton 2.0” and warning of a possible continuation of the SEC’s aggressive stance toward digital assets. Critics argue that appointing Stebbins could stifle innovation and push U.S. crypto firms to relocate abroad. Moreover, Deaton had earlier picked his favourite for the US SEC chair being Brand Bondi.

Bob Stebbins’ Record on Crypto Regulation

Bob Stebbins’ record at the SEC has sparked widespread debate in the cryptocurrency sector. During his tenure, he reportedly approved approximately 80 cryptocurrency enforcement actions, many of which targeted U.S.-based companies. Advocates for the crypto industry have long criticized such actions as inconsistent and overly punitive.

Stebbins has also been linked to regulatory decisions that favored certain crypto assets while subjecting others to lawsuits. This perceived inconsistency has fueled fears among industry leaders like Brad Garlinghouse that his leadership could perpetuate the current challenges in regulatory clarity. Moreover, he had also signed off on the Ripple lawsuit adding to the increasing concerns about his stance on crypto regulation.

However, although Bob Stebbins is seen as a strong contender, the Biden administration is reportedly evaluating other candidates. Names such as Dan Gallagher, Paul Atkins, Richard Farley, and current US SEC Commissioner Mark Uyeda have been mentioned as potential options.

Ripple CEO Brad Garlinghouse has expressed hope that the next SEC Chair will support innovation while ensuring fair treatment for companies like Ripple, Coinbase, and Circle.