Ripple CEO Brad Garlinghouse has openly criticized the U.S. Securities and Exchange Commission (SEC) for what he calls "hypocrisy" and the inconsistent application of its rules. This criticism comes in the wake of the SEC's latest move in the Binance lawsuit.
On July 30, the SEC responded to the court's minute order dated July 9, 2024. In the document, the SEC stated that it seeks leave to amend its complaint on the "Third Party Crypto Asset Securities" defined in its opposition to Binance’s motion to dismiss.
The SEC had argued that several cryptocurrencies, including Solana, Cardano, and Polygon, were securities in the Binance lawsuit.
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As stated in the filing, this proposed move obviates the need to "issue a ruling as to the sufficiency of the allegations as to those tokens at this time."
More evidence of SEC hypocrisy. Chair Gensler testifies the rules are clear, yet his SEC can't figure them out and applies them haphazardly, festering more industry confusion. A political agenda and/or bad faith litigation tactics. Def not a “faithful allegiance to the law". https://t.co/iX8IdvaW92
— Brad Garlinghouse (@bgarlinghouse) July 30, 2024
In a tweet, Garlinghouse did not hold back his criticism of the SEC’s actions: "More evidence of SEC hypocrisy. Chair Gensler testifies the rules are clear, yet his SEC can't figure them out and applies them haphazardly, festering more industry confusion. A political agenda and/or bad faith litigation tactics. Definitively not a faithful allegiance to the law."
Eyes on Ripple lawsuit
The SEC filed a lawsuit against Ripple in 2020, alleging that the company violated its rules by raising funds by selling XRP without first registering it as a security.
The case is closely watched because it has ramifications for the scope of the SEC's jurisdiction. Judge Analisa Torres decided last July that XRP sales to retail investors on exchanges did not constitute investment contracts, which many consider a loss for the agency's jurisdiction.
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While expectations remain on what comes next in the Ripple lawsuit, CEO Brad Garlinghouse maintains optimism, expecting a resolution soon.
In a Bloomberg interview earlier this month, Garlinghouse said: "Suffice to say, that the ruling has been clear from the judge, we expect resolution very soon, but can’t predict when the judge will rule there."
