Ripple CEO Brad Garlinghouse sharply criticized the U.S. Securities and Exchange Commission in a recent social media post.
Following a decision by the SEC to pause allegations that the native crypto assets of Solana (SOL), Cardano (ADA), and Polygon (MATIC) are unregistered securities in its ongoing lawsuit against Binance, Garlinghouse took to X to share his thoughts and call out the SEC’s inconsistent regulatory approach.
Garlinghouse tweeted, “More evidence of SEC hypocrisy. Chair Gensler testifies the rules are clear, yet his SEC can’t figure them out and applies them haphazardly.”
— Brad Garlinghouse (@bgarlinghouse) July 30, 2024More evidence of SEC hypocrisy.
Chair Gensler testifies the rules are clear, yet his SEC can't figure them out and applies them haphazardly, festering more industry confusion.
A political agenda and/or bad faith litigation tactics. Def not a “faithful allegiance to the law". https://t.co/iX8IdvaW92
Ripple in the wake of the SEC complaint amendment
The SEC announced its intention to amend its complaint involving Binance, which could offer temporary relief to these assets under allegation. They were previously under intense scrutiny and facing delistings from trading platforms due to regulatory uncertainty.
The statement did not refer to Ripple (XRP), despite the ongoing legal dispute between the two parties. The SEC accused Ripple, as well as its executives Brad Garlinghouse and Christian Larsen, of selling unregistered securities, specifically XRP, worth over $1.3 billion to the public through their company.
The SEC’s motion to amend is due within 30 days of the court’s scheduling order, providing a brief respite for investors in SOL, ADA, and MATIC. Despite the SEC’s latest move, Garlinghouse’s critique underscores concerns within the crypto industry about regulatory clarity and consistency, especially with Gary Gensler in control.