Ripple CEO Criticizes Former SEC Chair’s Regulatory Approach
Ripple CEO Brad Garlinghouse has strongly criticized former SEC Chair Jay Clayton’s remarks regarding the agency’s regulatory approach. The SEC has taken various regulatory actions against crypto exchanges and companies since Q1 2023.
Clayton’s View on Legal Action
In an interview with CNBC on June 29, 2023, Clayton expressed his view that the SEC should pursue legal action against specific companies only when they have strong legal grounds. He emphasized the importance of introducing regulations and legal cases that can withstand judicial scrutiny.
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
Ripple CEO Reminds of Lawsuit
Garlinghouse reminded that Clayton had filed a lawsuit against Ripple, him, and co-founder Chris Larsen in December 2020. The SEC accused them of conducting an unregistered digital asset securities offering, claiming they raised over $1.3 billion through sales of the XRP token.
SEC Moves to Dismiss Charges
The recent developments in the lawsuit have brought attention to Clayton’s statements from June 2023. The SEC has moved to dismiss the charges against Garlinghouse and Larsen following Judge Analisa Torres’s ruling in July, which declared that retail sales of XRP did not meet the legal definition of a security. However, Ripple was found to have violated securities laws by selling XRP tokens to institutional investors.
Hot Take: Ripple CEO Calls Out Former SEC Chair’s Hypocrisy
Ripple CEO Brad Garlinghouse has criticized former SEC Chair Jay Clayton for his regulatory approach and hypocrisy. Garlinghouse reminded that Clayton had brought a lawsuit against Ripple, him, and co-founder Chris Larsen before leaving the SEC. The recent developments in the lawsuit have highlighted Clayton’s previous statements about pursuing legal action based on strong legal grounds. The SEC has moved to dismiss the charges against Garlinghouse and Larsen, but the court found that Ripple violated securities laws by selling XRP tokens to institutional investors. This ongoing saga showcases the tensions between crypto companies and regulatory agencies like the SEC.
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