Ripple CEO Brad Garlinghouse Spotlights Another Win Against US SEC, Gensler

by

As a researcher with a background in finance and cryptocurrency, I have been closely following the ongoing regulatory battles between various crypto companies and the U.S. Securities and Exchange Commission (SEC). The recent developments in the SEC’s lawsuit against Binance, as well as Ripple CEO Brad Garlinghouse’s public criticism of the SEC, have caught my attention.

Brad Garlinghouse, CEO of Ripple, has accused the U.S. Securities and Exchange Commission (SEC) of inconsistency in their cryptocurrency regulation approach. This statement came following the SEC’s move to modify their initial complaint against Binance.

Ripple CEO Brad Garlinghouse Slams SEC

As an analyst, I’d rephrase it as follows: In a recent statement, Brad Garlinghouse, CEO of Ripple, has criticized the U.S. Securities and Exchange Commission (SEC) for what he perceives as inconsistent and confusing regulatory practices. He specifically pointed out the SEC’s seemingly contradictory approach, stating that while SEC Chair Gary Gensler claims the rules are clear, the SEC seems to struggle with enforcing these rules consistently.

For this reason, Ripple CEO has stated that the SEC’s actions lead to “more industry confusion,”

More evidence of SEC hypocrisy.

Chair Gensler testifies that the rules are plain and unambiguous, but the Securities and Exchange Commission under his leadership seems to struggle with implementation, resulting in inconsistent application and added industry perplexity.

1. A partisan approach or underhanded legal strategies (not adherence to the principles of justice).

— Brad Garlinghouse (@bgarlinghouse) July 30, 2024

The SEC’s move aims to avoid a judicial decision on whether Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos (ATOM), Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS), and Chainlink (COTI) are considered securities based on the Howey Test.

SEC Seeks to Amend Binance Complaint

1. “On Monday, the Securities and Exchange Commission (SEC) declared their plans to modify their initial lawsuit against Binance. This change postpones a court decision about whether the tokens can be considered as securities.”

1. The SEC’s filing mentioned they intend to modify their lawsuit to tackle issues related to “Third-Party Crypto Asset Securities.” This adjustment would prevent an immediate court ruling on these concerns, but suggests that the potential changes could extend beyond just the tokens involved in this particular case, as noted by Binance.

As an analyst looking back on this situation, I’ve observed that during the recent controversy, I aligned myself with Ripple CEO’s perspective, joining other critics in voicing concerns. Notably, former President Trump expressed similar views at the Bitcoin Conference 2024. He declared his intention to oust SEC Chair Gary Gensler on his first day back in office due to what he described as the SEC’s “anti-crypto stance.”

1) Trump additionally expressed that he intends to appoint an SEC chair who will be receptive to innovation and the evolving landscape of digital currencies in America. Notable figures within the cryptocurrency sector share this perspective, including business magnate Mark Cuban, who advocated for Gensler’s replacement due to perceived regulatory overreach.

Ripple vs. SEC Lawsuit Nears Conclusion

As an analyst, I find myself observing that the legal battle between Ripple and the SEC, which commenced in December 2020, appears to be approaching a significant juncture. The partial victory Ripple achieved in 2023, where a judge ruled that XRP does not fulfill all criteria of the Howey Test when sold to the public, serves as a prelude to the final verdict. This decision seems to set the stage for the resolution of this protracted legal dispute.

Despite this, there’s ongoing apprehension about XRP sales to institutional investors. Yet, Ripple’s CEO, Brad Garlinghouse, remains optimistic that the issue will be settled. Legal experts anticipate that following the court’s decision, an appeal may ensue.

As an analyst, I’ve been following the ongoing legal battle between Ripple and the plaintiffs who have brought a civil lawsuit against the company for alleged securities fraud. The honorable Judge Phyllis Hamilton of the U.S. District Court for the Northern District of California has ruled that this case will proceed to trial. The plaintiffs claim that Ripple’s CEO made false statements during an interview in 2017, which led investors to buy XRP under false pretenses.

Binance Labs Invests In This Liquid Staking Protocol

Read More

2024-07-30 19:55