Ripple CEO accuses SEC of ‘hypocrisy’ and confusing regulations

Ripple CEO Brad Garlinghouse slammed the U.S. Securities and Exchange Commission in a recent social media post.

Following the SEC’s decision to halt claims that native crypto assets Solana (SOL), Cardano (ADA), and Polygon (MATIC) are unregistered securities in the ongoing lawsuit against Binance, Garlinghouse took to X to share his thoughts and criticize the SEC’s inconsistent regulatory approach.

“More evidence of SEC hypocrisy. Chairman Gensler states the rules are clear, but the SEC can’t figure them out and is haphazardly enforcing them,” Garlinghouse tweeted.

More proof of the SEC’s hypocrisy.

Chairman Gensler says the rules are clear, but the SEC has failed to decipher them and is applying them haphazardly, creating more confusion in the industry.

A political agenda and/or bad faith litigation tactics. Definitely not “faithful adherence to the law.” https://t.co/iX8IdvaW92

— Brad Garlinghouse (@bgarlinghouse) July 30, 2024

Surge after SEC complaint amendment

The SEC has announced its intention to amend its complaint against Binance, which could provide temporary relief to these alleged entities. They were previously under intense scrutiny and in danger of being removed from trading platforms due to regulatory uncertainty.

The statement did not reference Ripple (XRP), despite the ongoing legal dispute between the two parties. The SEC accused Ripple and its executives Brad Garlinghouse and Christian Larsen of selling more than $1.3 billion worth of unregistered securities, primarily XRP, to the public through their company.

The SEC’s request for amendment must be filed within 30 days of the court’s scheduling order, providing investors in SOL, ADA, and MATIC with a brief respite. Despite the SEC’s latest move, Garlinghouse’s criticism highlights concerns about regulatory clarity and consistency in the crypto industry, especially with Gary Gensler in control.