Larsen Accuses SEC of Witch-Hunt and Calls for Accountability
In a recent post on his X (formerly Twitter), Chris Larsen, co-founder of Ripple, criticized the US Securities and Exchange Commission (SEC) for its baseless claims against him and Ripple CEO Brad Garlinghouse. Larsen referred to the SEC as a “rogue administrative state” and called for an investigation into the Commission’s potential conflict of interest. He also held the SEC accountable for damaging the country’s reputation as an innovation hub, resulting in job losses and crypto innovation moving offshore.
Ripple Highlights Regulatory Uncertainty Caused by SEC
Ripple, in a press release, expressed how the SEC’s regulatory uncertainty and pursuit of power had driven crypto innovation outside the US. The company emphasized that a significant portion of its business is conducted overseas, with most of its workforce located outside the country. This development represents a victory for Ripple and the crypto industry at large, as the SEC voluntarily dismissed its claims against Garlinghouse and Larsen with prejudice, preventing future actions against them.
SEC’s “Surrender” and Possible Factors
Stuart Alderoty, Chief Legal Officer of Ripple, described the dismissal as a “surrender” by the SEC and criticized their decision to target individuals personally. Pro-XRP legal experts suggested that the ETH Gate saga, particularly former SEC official William Hinman’s speech and emails, may have influenced the SEC’s decision to surrender. If the case had gone to trial, Hinman might have been called to testify. It was predicted that the SEC would avoid subjecting Ripple’s executives to a trial that could damage their credibility.
Hot Take: Victory for Ripple Signals Weakening Credibility of SEC
The dismissal of claims against Ripple’s CEO and co-founder represents a significant victory for the company and the wider crypto industry. The SEC’s decision to voluntarily dismiss the claims, coupled with potential factors such as the ETH Gate saga, suggests a weakening credibility of the SEC. This outcome underscores the need for accountability and transparency within regulatory bodies like the SEC to ensure fair treatment of individuals and companies operating in the crypto space.
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