Regulation
Ripple CEO Brad Garlinghouse Spotlights Another Win Against US SEC, Gensler
Ripple’s CEO, Brad Garlinghouse has called out the U.S. Securities and Exchange Commission (SEC) of hypocrisy in handling cryptocurrency regulations. Garlinghouse made this remark in light of the recent events in the SEC’s lawsuit against Binance where the regulatory body wanted to alter the initial complaint.
Ripple CEO Brad Garlinghouse Slams SEC
Ripple CEO Garlinghouse has taken a swipe at the U.S. Securities and Exchange Commission (SEC) for what he says are inconsistent and confusing regulatory practices. In a recent statement, Garlinghouse mentioned the SEC’s hypocritical approach, noting that SEC Chair Gary Gensler said that the rules are clear, but the SEC does not appear to be able to enforce them consistently.
For this reason, Ripple CEO has stated that the SEC’s actions lead to “more industry confusion,”
More evidence of SEC hypocrisy.
Chair Gensler testifies the rules are clear, yet his SEC can’t figure them out and applies them haphazardly, festering more industry confusion.
A political agenda and/or bad faith litigation tactics. Def not a “faithful allegiance to the law”. https://t.co/iX8IdvaW92
— Brad Garlinghouse (@bgarlinghouse) July 30, 2024
This action by the SEC is in a bid to prevent a courtroom ruling on whether SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI are securities under the Howey Test.
SEC Seeks to Amend Binance Complaint
On Monday, the SEC announced its intention to amend its original complaint against Binance. This development delays a court ruling on whether the tokens are securities.
The SEC’s filing noted that it plans to move to alter the complaint to address “Third Party Crypto Asset Securities” concerns so as not to necessitate an immediate court ruling on the matter. Binance pointed out that the SEC’s decision to amend the complaint indicates that the possible changes are not limited to the tokens in the case.
During this controversy, backing Ripple CEO stance, Former President Donald Trump also joined other critics of the SEC Chair Gary Gensler. At the Bitcoin Conference 2024, Trump announced that if he was to return to power, he would replace Gensler on his first day in office due to what he called the SEC’s “anti-crypto campaign. “
Trump also stated that he will nominate a new SEC chair who will embrace innovation and the future of digital assets in the United States. Other influential personalities in the crypto space agreed with this view, including billionaire Mark Cuban, who called for the removal of Gensler for overstepping his bounds as a regulator.
Ripple vs. SEC Lawsuit Nears Conclusion
At the same time, the legal war between Ripple and the SEC started in December 2020 also seems to be close to a turning point. The partial victory that Ripple secured in 2023 when a judge stated that XRP does not satisfy all elements of the Howey Test for securities when sold to the general public is the preparation for the final decision.
However, there are still some concerns regarding the sales of XRP to institutional investors. However, the Ripple CEO, Brad Garlinghouse, remain hopeful that the matter will be resolved while legal analysts expect that there may be an appeal after the court’s final ruling.
Judge Phyllis Hamilton of the U. S. District Court for the Northern District of California also permitted a civil lawsuit against Ripple to go to trial. This lawsuit claims that Ripple CEO engaged in securities fraud by making false statements during an interview in 2017. Nevertheless, Ripple’s legal representatives continue to argue that XRP does not fall under the Howey Test and is therefore not a security, a position in line with Judge Analisa Torres’s decision made in the previous year.
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Kelvin Munene Murithi
Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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