- The CEO of Ripple, Brad Garlinghouse, has accused the SEC of lying and enforcing unequal rules.
- Due to their unregistered operations and classification of certain cryptocurrencies as securities, Binance and Coinbase are the target of a lawsuit brought by the SEC.
The CEO of Ripple, Brad Garlinghouse, attacked the US Securities and Exchange Commission for its uneven and hypocritical enforcement of its regulations.
Brad Garlinghouse, CEO of Ripple, criticizes the SEC for its inconsistent regulations.
The critique was directed towards the actions taken by the SEC in its ongoing legal action against Binance.
The remarks made by Ripple CEO Brad Garlinghouse on social media site X can be interpreted as a response to previous remarks made by SEC Chairman Gary Gensler, who stated that the agency will make the laws extremely plain after the industry was confused by the agency’s inconsistent enforcement. He sees it as more indicative of a political agenda-setting tactic or a malevolent lawsuit strategy than of a sincere regulatory goal.
The SEC previously filed a lawsuit against Binance for selling securities after listing BNB, BUSD, SOL, ADA, and MATIC among other cryptocurrencies as securities. The most recent complaint has eliminated the assertions regarding their sale.
The SEC has brought various charges against a few cryptocurrency companies in the past year. It accused Binance and Changpeng Zhao, the company’s previous CEO, of misleading clients about registration issues and neglecting to block out US-based investors. Subsequently, the SEC declared SOL, ADA, and MATIC, among other cryptocurrencies, to be securities and accused Coinbase of running an unlicensed exchange.
Industry Concerns About Regulatory Clarity in Crypto
Garlinghouse’s reprimand perfectly captures the growing concern in the crypto community over consistency in regulation. Stuart Alderoty, chief legal officer of Ripple, disclosed that while the SEC’s allegations about these tokens were rejected, the same tokens remain unresolved in other situations.
Since the SEC has up to 30 days to make an application for permission to modify its allegations, this order now provides investors affected by it a temporary reprieve, but it says nothing about other tokens.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.