Ripple CEO Brad Garlinghouse criticized the statement of former US Securities and Exchange Commission (SEC) Chairman Jay Clayton regarding the agency’s approach to regulating the industry.
Watching this clip makes my blood boil.
The hypocrisy is shocking. @CNBC @SquawkCNBC should be calling him out for the bullshit.
(As a reminder, jay clayton brought the case against ripple, me and Chris Larsen. And left the building the next day).
— Brad Garlinghouse (@bgarlinghouse) October 28, 2023
Garlinghouse commented on Gemini co-founder Cameron Winklevoss’ June 28 post. At the time, Clayton expressed the view on CNBC that the SEC should only file lawsuits against specific companies when they have compelling reasons to do so.
He recalled that the SEC filed a lawsuit against him, the fintech company and co-founder Chris Larsen under Clayton. The next day the official resigned.
The commission alleged that Ripple sold ~$1.39 billion worth of unregistered securities in the form of XRP over seven years. It called top managers “major holders of the security.” According to the statement, they collectively sold $600 million in tokens.
On June 13, 2023, the company won a partial victory in the case. Judge Analisa Torres ruled that program sales and other token distributions do not constitute the implementation of investment contracts. However, according to the court’s decision, the sale of XRP to institutional industry participants violated securities laws.
The SEC attempted to challenge the court’s ruling, but Torres rejected the agency’s interlocutory appeal. She considered that the Commission did not provide enough evidence, and the arguments presented would not be able to “significantly advance the final dismissal of the case.”
In October, regulators dropped a lawsuit against Larsen and Garlinghouse alleging violations of securities laws. At the same time, Ripple’s director of legal affairs, Stuart Alderoti, noted that this was the SEC’s third defeat in litigation without any victories.
In June, the Commission filed lawsuits against Bitcoin exchanges Binance and Coinbase.
Earlier, US House of Representatives member Warren Davidson called for the current head of the regulator, Gary Gensler, to be removed from his position as a leader due to unsuccessful proceedings against Grayscale. It was preceded by a partial defeat in the case against Ripple.
Later, the media accused the SEC chairman of turning the agency into a “banana republic.”
Source: Cryptocurrency
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