Thomas Daniels
Brad Garlinghouse, the CEO of Ripple, has openly criticized the U.S. Securities and Exchange Commission (SEC) for what he describes as a hypocritical and confusing regulatory stance. In a recent post on X, Garlinghouse addressed the SEC’s decision to temporarily halt allegations that the native crypto assets of Solana, Cardano, and Polygon are unregistered securities, as part of its ongoing lawsuit against Binance.
Garlinghouse expressed his frustrations, stating, “More evidence of SEC hypocrisy. Chair Gensler testifies the rules are clear, yet his SEC can’t figure them out and applies them haphazardly.” This critique follows the SEC’s announcement that it intends to amend its complaint regarding Binance, potentially easing the regulatory pressure on the mentioned crypto assets. Previously, these assets faced intense scrutiny and the threat of delisting from trading platforms due to regulatory uncertainties.
Notably, the SEC’s statement did not include any references to Ripple or its cryptocurrency, XRP, despite the ongoing litigation between Ripple and the SEC. The SEC has accused Ripple, along with Garlinghouse and co-founder Christian Larsen, of illegally selling XRP as unregistered securities, a transaction purportedly worth over $1.3 billion.
The SEC’s motion to amend its complaint is expected within 30 days of the court’s scheduling order, offering a temporary reprieve for investors in SOL, ADA, and MATIC. However, Garlinghouse’s comments highlight ongoing concerns in the cryptocurrency sector about the clarity and consistency of the SEC’s regulatory framework, particularly under the leadership of Gary Gensler.
