Regulation
Ripple CEO Brad Garlinghouse Highlights Another Victory Against US SEC and Gensler
Ripple CEO Brad Garlinghouse has called out the hypocrisy of the U.S. Securities and Exchange Commission (SEC) in handling cryptocurrency regulations. Garlinghouse made the remark in light of recent events in the SEC’s lawsuit against Binance, where the regulator wanted to amend the original complaint.
Ripple CEO Brad Garlinghouse criticizes SEC
Ripple CEO Garlinghouse lashed out at the U.S. Securities and Exchange Commission (SECOND) for what he considers inconsistent and confusing regulatory practices. In a recent statement, Garlinghouse called out the SEC’s hypocritical approach, noting that SEC Chairman Gary Gensler has said the rules are clear, but the SEC doesn’t seem to be able to enforce them consistently.
For this reason, Ripple CEO said the SEC’s actions lead to “further confusion in the industry.”
This SEC action seeks to prevent a judicial decision on whether SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS and COTI are securities under the Howey test.
SEC Seeks to Amend Complaint Against Binance
On Monday, the SEC announced its intention to amend its original complaint against BinanceThe development delays the court’s decision on whether the tokens are securities.
The SEC filing states that it plans to amend the complaint to address concerns about “third-party crypto asset securities” so as not to require an immediate court ruling on the matter. Binance noted that the SEC’s decision to amend the complaint indicates that the possible changes are not limited to the tokens at issue.
During this controversy, supporting the Ripple CEO’s stance, former President Donald Trump also joined other critics of SEC Chairman Gary Gensler. At the Bitcoin 2024 conference, Trump announced that if he were to return to office, he would replace Gensler on his first day in office due to what he called the SEC’s “anti-crypto campaign.”
Asset He also said he would appoint a new SEC chair who would focus on innovation and the future of digital assets in the United States. Other influential figures in the cryptocurrency industry agreed, including billionaire Mark Cuban, who called for Gensler’s removal for overstepping his regulatory duties.
Ripple vs. SEC Lawsuit Nears Conclusion
At the same time, the legal war between Ripple and the SEC, which began in December 2020, also appears to be nearing a turning point. The partial victory that Ripple achieved in 2023 when a judge declared that XRP did not meet all elements of the Howey Test for securities sold to the general public is setting the stage for the final decision.
However, there are still some concerns about XRP sales to institutional investors. However, Ripple CEO, Brad Garlinghouseremain optimistic about the resolution of the case, while legal analysts expect there to be an appeal after the court’s final decision.
Judge Phyllis Hamilton of the U.S. District Court for the Northern District of California also authorized a civil lawsuit against Ripple. The lawsuit claims that the Ripple CEO committed securities fraud by making false statements during a 2017 interview. However, Ripple’s legal representatives continue to argue that XRP does not fall under the Howey Test and is therefore not a security, a position consistent with Judge Analisa Torres’ ruling the previous year.
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