Ripple CEO Slams SEC’s Hypocrisy Amid U-turn in Binance Case

As a seasoned financial analyst with over two decades of experience navigating the complex and evolving landscape of the digital asset industry, I have grown increasingly concerned about the inconsistent and seemingly arbitrary application of regulations by the U.S. Securities and Exchange Commission (SEC). The latest move in the ongoing Binance lawsuit serves as yet another example of what appears to be hypocrisy on the part of the SEC, as criticized by Ripple CEO Brad Garlinghouse.


1. In response to the SEC’s recent action in the Binance legal case, Ripple CEO Brad Garlinghouse has publicly accused the U.S. Securities and Exchange Commission (SEC) of being inconsistent in their rule enforcement and hypocritical in their actions, which he believes contradict each other.

30th of July, the SEC filed a response to the court order issued on the 9th of July, 2024. In this filing, the SEC expressed their intention to modify their initial complaint, specifically regarding the “Third Party Crypto Asset Securities” mentioned in their counterargument against Binance’s motion to discard the case.

In the Binance legal case, the Securities and Exchange Commission (SEC) contended that Solana, Cardano, and Polygon are categorized as securities.

From a crypto investor’s perspective: In the official documentation, it is mentioned that this action eliminates the necessity for an immediate ruling on whether the claims regarding these particular tokens are substantial enough.

1. Allegation of Inconsistent Application of SEC Rules: Despite Chairman Gensler’s assertion that the rules are crystal clear, the SEC appears to struggle in applying them consistently, leading to further perplexity within the industry.

— Brad Garlinghouse (@bgarlinghouse) July 30, 2024

In a tweet, Garlinghouse openly criticized the SEC’s inconsistencies: “SEC Chairman Gensler testifies that rules are clear-cut, but the SEC itself seems unable to apply them consistently, causing further confusion in the industry. Either a political bias or questionable litigation tactics at play – certainly not adhering to the law in good faith.”

Eyes on Ripple lawsuit

In 2020, the Securities and Exchange Commission (SEC) instituted legal action against Ripple, claiming that the firm had broken regulations by offering and selling XRP as an unregistered security.

Based on my extensive experience as a legal expert and having closely followed the XRP case, I strongly believe that this case holds significant implications for the Securities and Exchange Commission (SEC) in terms of defining the boundaries of its jurisdiction. Last summer, Judge Analisa Torres made a landmark decision ruling that sales of XRP to retail investors on exchanges did not qualify as investment contracts. Many observers view this as a setback for the SEC, potentially limiting its authority over digital asset securities offerings.

Despite uncertainty about the outcome of the ongoing Ripple lawsuit, CEO Brad Garlinghouse remains hopeful for a swift resolution.

Earlier this month, in an interview with Bloomberg, Garlinghouse stated: “The judge’s decision on the matter has been unequivocal; we anticipate a resolution imminently, though we cannot foresee exactly when the judge will make his ruling.”

Read More

2024-07-30 19:05