Ripple CEO Brad Garlinghouse criticized former US Securities and Exchange Commission Chairman Jay Clayton. To that end, Garlinghouse said the former SEC Chairman’s “hypocrisy is shocking.”
Jay Clayton’s views on SEC cases are controversial
Ripple Chief Executive Officer Brad Garlinghouse harshly criticized former US Securities and Exchange Commission (SEC) Chairman Jay Clayton’s comments regarding the agency’s corporate regulatory stance. The Commission is implementing various anti-crypto actions against crypto exchanges and companies starting in the first quarter of 2023. Clayton’s previous comments, dated June 2023, have gained significance in the context of recent developments in the lawsuit against Garlinghouse and Ripple founder Chris Larsen.
Meanwhile, cryptokoin.comAs you follow from , the SEC dropped the charges against two senior executives. Interestingly, the accusations were filed on December 22, 2023, just before the end of his term as SEC Chairman. This was well before the actual expiration date in June 2021. In an interview with CNBC on June 29, 2023, Clayton said that the US SEC should ideally take action against individual companies if its argument has a specific legal basis. He also noted that regulators should only introduce rules and cases that they are confident will pass through the judiciary.
Ripple CEO reminded the person who started the case
Ripple CEO Brad Garlinghouse fired back at former SEC Chairman Jay Clayton for showing hypocrisy when it comes to corporate litigation and discussions about the agency’s role. Garlinghouse responded to a CNBC roundtable conversation featuring Jay Clayton shared by Gemini CEO Cameron Winklevoss. Ripple CEO reminded that Clayton started the case that they fought for nearly 3 years.
One of the key issues that angered Garlinghouse was that Clayton left the SEC days after the Ripple case was filed. Meanwhile, in the CNBC interview, Clayton was critical of current SEC Chairman Gary Gensler. Clayton accused the SEC of abusing its authority regarding enforcement actions against crypto firms.
Ripple is not the only cryptocurrency company targeted by the SEC!
Since becoming head of the SEC, current SEC Chairman Gary Gensler has filed a lawsuit against Kraken Exchange over its staking program earlier this year. Eventually the trading platform agreed to discontinue the program. It also reached a $30 million settlement with the market regulator. In addition to Kraken, Coinbase Exchange and Binance are also targeted by the commission. The SEC alleges both platforms trade unregistered crypto securities.
Among the cryptocurrencies that the SEC claims to be securities are Cardano (ADA), Solana (SOL), Filecoin (FIL) and Decentraland (MANA). Despite the high-profile cases under Gary Gensler’s SEC, Ripple Labs’ case initiated by Clayton is considered the most high-profile legal fight in the crypto ecosystem in the last few years. In July, Judge Analisa Torres ruled that scheduled sales of XRP did not constitute an investment contract. Thus, the payments company achieved its first big win.
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