The Ripple CEO Disagrees with Former SEC Chair’s Regulatory Stance
The Chief Executive Officer of Ripple, Brad Garlinghouse, has expressed his disagreement with the regulatory approach taken by Jay Clayton, the former Chair of the US Securities and Exchange Commission (SEC). Garlinghouse’s criticism emerged in response to comments made by Clayton during a CNBC interview on June 29, 2023. Clayton was discussing the SEC’s more assertive legal position towards corporations, particularly those in the cryptocurrency industry.
SEC’s Regulatory Measures Cause Disruption in the Cryptocurrency Industry
Since the beginning of 2023, the Securities and Exchange Commission (SEC) has implemented several regulatory measures targeting cryptocurrency organizations and exchanges in order to protect investors. These actions have significantly disrupted the regulatory landscape, creating greater legal uncertainty for various crypto organizations. In his CNBC interview, Clayton emphasized the importance of pursuing legal action only against corporations with legitimate legal grounds and emphasized the need for regulatory agencies to present claims and policies that can withstand court scrutiny.
Ripple CEO Highlights the Irony of Clayton’s Statements
In response to Clayton’s interview, Brad Garlinghouse pointed out the irony of the situation, especially considering that the SEC had previously filed a lawsuit against Ripple when Clayton was leading the agency. In December 2020, Ripple, Garlinghouse, and co-founder Christian Larsen were accused of conducting an “unregistered, ongoing digital asset securities offering,” allegedly generating over $1.3 billion from the sale of XRP. Garlinghouse exposed the inconsistency between Clayton’s words and actions, emphasizing the weak legal foundation of the SEC’s case against Ripple, which sought to classify XRP as a security.
Clayton’s Remarks Spark Discussion in Ongoing Court Proceedings
Clayton’s statements from June 2023 have become a topic of discussion among the parties involved in the current court proceedings, which are still ongoing. In October, the SEC filed a motion requesting the dismissal of the allegations against Garlinghouse and Larsen without prejudice, further fueling the debate surrounding the regulatory environment for cryptocurrencies.
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### News source: blockchain.news