Ripple CEO Condemns US SEC For Withdrawal From The Binance Lawsuit, Here’s Why

As a seasoned analyst with over two decades of experience in the financial industry, I find myself increasingly perplexed by the ongoing saga between Ripple and the SEC, and now Binance. The inconsistency and vagueness in the regulatory landscape, as criticized by Brad Garlinghouse, resonates deeply with my observations.


In a harsh critique, Brad Garlinghouse, CEO of financial titan Ripple, openly criticized the U.S. Securities and Exchange Commission (SEC) for abruptly backing down in its legal dispute with Binance, the globally dominant cryptocurrency exchange.

In a critique, the leader of Ripple accused the Securities and Exchange Commission (SEC) of displaying inconsistency and ambiguity in how it enforces regulations against prominent digital asset platforms.

Ripple CEO Calls The US SEC Hypocrites

On Tuesday, the U.S. Securities and Exchange Commission (SEC) withdrew its petition to classify tokens like Solana (SOL), Cardano (ADA), and Polygon (MATIC) as securities in the legal action against Binance. This move has been perceived by the cryptocurrency community as an instance of inconsistency and lack of clarity in the SEC’s regulatory approach.

Based on the documents submitted, the defendants have been informed that the Securities and Exchange Commission plans to modify their original lawsuit, focusing specifically on the matter of Third Party Cryptocurrency Asset Securities.

The filing read:

The Securities and Exchange Commission (SEC) has indicated that it plans to revise its lawsuit against the defendants, which could affect the “Third Party Crypto Asset Securities” mentioned in the SEC’s comprehensive response to the defendants’ motion to dismiss (Docket Number 172). This means that the court won’t have to make a decision right now about whether the accusations regarding those digital tokens are solid enough.

Following their discussion and agreement, Binance and the Securities and Exchange Commission (SEC) endorsed the SEC’s suggestion for a hearing on a motion to modify and legal documents. With the SEC rescinding its demand, this essentially means that the court will no longer categorize the tokens in question as securities.

In response to this action, Brad Garlinghouse, CEO of Ripple, voiced his dissatisfaction, suggesting that the decision further reveals inconsistencies in the regulatory agency’s actions. He advocates for a clearer and more consistent regulatory environment.

Garlinghouse continued his critique of the agency, stating that they don’t seem to fully comprehend their own purported clear rules under Gensler, yet they apply them inconsistently, which only adds to the industry’s perplexity. He went on to say, “This appears to be more about a political agenda and underhanded legal strategies. There’s no sign of adherence to the law as it should be,” the Ripple CEO concluded.

Gensler’s SEC Responsible For Billion Of Dollars Damages

Critics of Brad Garlinghouse have gained backing from prominent figures like legal expert John E. Deaton. Essentially, Garlinghouse questions why, if the rules are as clear as Gensler claims, are his legal team distancing themselves from those explicitly stated rules? This is according to Deaton’s statement.

The analyst believes that the SEC’s decision not to pursue action against Binance reinforces the argument for Gensler’s resignation as chair, highlighting his role in the Ripple situation.

Deaton argues that SEC, under Chairman Gensler’s leadership, has incurred billions in losses for retail investors due to some extravagant statements. Moreover, he pointed out instances where Gensler allegedly lied under oath at Senator Warren’s behest, leading him to call for the chairman’s immediate resignation.

Ripple CEO Condemns US SEC For Withdrawal From The Binance Lawsuit, Here’s Why

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2024-08-01 00:12