Ripple CEO Brad Garlinghouse has warned that as Ripple's legal battle against the US financial watchdog is drawing to a close, it is just the beginning of a bigger battle for the industry, and the fight for regulatory clarity "has to continue."
After the Hinman Documents were revealed on June 13 as part of the ongoing lawsuit between Ripple and the United States Securities and Exchange Commission (SEC), Garlinghouse posted a video on Twitter to discuss the lawsuit timeline and express his frustration with the SEC.
Posted on June 17, Garlinghouse said in the video that Hinman's now-public documents suggest the SEC "knowingly created confusion about the rules, and they used that confusion through enforcement."
Trying something new: A few thoughts from me on the events (specifically the release of the Hinman documents) this week. For me, this has all had a personal slant, and I felt it warranted some personal comments. pic.twitter.com/k4dYeQGhsN
—Brad Garlinghouse (@bgarlinghouse) June 16, 2023
In his comments, Garlinghouse strongly criticized the SEC's actions, describing them as a clear case of "bad faith, plain and simple."
He believes that this attitude was present from the beginning of the lawsuit against Ripple, which was initially presented in December 2020saying it felt like a "very grinch touch", filing the case only "days before Christmas".
"This is the definition of putting politics before people. […] and the search for power over sound politics," he said.
Related: Ripple Welcomes MiCA Regulation as US Lawsuit Highlights Lack of Clarity
Garlinghouse explained that before filing the lawsuit, he answered "all the questions [the SEC] had" and it was never suggested to him that XRP was a security.
He believes that the SEC is “looking to kill” cryptocurrency industry and innovation in the US, arguing that Hinman’s speech is not about “any token or blockchain”, but rather about stance. general that the SEC has towards the crypto industry.
“This is about showing the extent to which the SEC has relentlessly cracked down on cryptocurrency players, while professing bogus open arms and calls to get in and register, while lying about their so-called guidance.”
Garlinghouse further explained that "at best," the documents suggest senior SEC officials "could not agree" on the law, telling Bill Hinman directly that it "would further confuse the public about the rules." for cryptocurrencies".
Cointelegraph reported on June 13 that notes in the disclosed documents suggested that the publishers were worried that Hinman claiming that Ether is not a security, may make it "difficult for the agency to take a different position on Ether in the future."
However, Garlinghouse noted that "at worst" the documents showed that Hinman "willfully ignored the law" and tried to "create new laws."
He stressed that the industry needs to work together as the SEC could take action against more crypto companies in the future.
"Ultimately, as our lawsuit comes to an end for so many others, it is just beginning, so the fight for clarity must continue," he said.
This comes after the SEC filed a lawsuit. against crypto exchange Binance on June 5, for allegedly offering unregistered securities. A day later, the regulator took action against Coinbase on similar grounds.
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