Ripple CEO Brad Garlinghouse sharply criticized former U.S. Securities and Exchange Commission (SEC) Chairman Jay Clayton's comments about the agency's regulatory approach. Since the first quarter of 2023, the SEC has initiated several regulatory actions against crypto companies and exchanges.
During an interview with CNBC on June 29, 2023, Clayton voiced his opinion that the SEC should take legal action against specific companies only when they have solid legal grounds. He stressed that regulatory agencies should introduce regulations and legal cases that they believe will successfully withstand judicial scrutiny.
Watching this clip makes my blood boil.
The hypocrisy is shocking. @CNBC @SquawkCNBC We should call him the fuck out.
(As a reminder, Jay Clayton brought the case against Ripple, Chris Larsen and me. And he left the building the next day.)
—Brad Garlinghouse (@bgarlinghouse) October 28, 2023
In light of the SEC's vote to dismiss the allegations without bias, Ripple CEO remembered that the former SEC chairman had filed a lawsuit that had little chance of success in court. In the lawsuit against Ripple, Garlinghouse, and Ripple co-founder Christian Larsen in December 2020, the The SEC charged the company and the two executives. of “ongoing and unregistered digital asset securities offering,” claiming they had raised more than $1.3 billion from XRP sales (XRP) file.
Garlinghouse said:
“As a reminder, Jay Clayton brought the case against Ripple, Chris Larsen and me. And he left the building the next day.”
Clayton's statements from June 2023 have drawn attention in light of recent developments in the lawsuit involving Garlinghouse and Larsen. As previously reported, the SEC decided to dismiss the charges against executives in October.
Related: Ripple Executive and XRP Community Support SEC Commissioner's Dissent to LBRY Lawsuit
The SEC's measure follows that of Judge Analisa Torres partially ruled in favor of Ripple in July, declaring that retail sales of the XRP token did not meet the legal definition of value. However, the court found that Ripple had violated securities laws by selling XRP tokens directly to institutional investors.
Magazine: Crypto Regulation: Does SEC Chairman Gary Gensler Have the Last Word?
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