Ripple CEO Brad Garlinghouse has joined Tesla CEO Elon Musk in criticizing the U.S. Securities and Exchange Commission (SEC), intensifying discussions about the future of crypto regulation in the U.S. This collaboration has captured significant attention, especially as market participants look forward to a potentially pro-crypto regulatory environment.
Elon Musk Labels the SEC a “Political Tool”
Elon Musk’s criticism of the SEC recently gained traction after he described the agency as a “political tool” used for “dirty work.” This statement followed news of SEC Chair Gary Gensler targeting Musk’s company, Neuralink, with a notice. Musk’s comments have sparked reactions from political figures, legal experts, and crypto advocates, further fueling debates about the SEC's approach.
Ripple CEO Aligns with Musk
Brad Garlinghouse voiced his support for Musk by reposting his criticism of the SEC, signaling shared frustrations with the agency. Ripple has been embroiled in its own long-standing legal battle with the SEC over the classification of XRP, its native cryptocurrency. This lawsuit has become a focal point in the broader discussion about crypto regulation, with Ripple challenging the SEC’s authority and methods.
Political and Legal Backlash Against the SEC
Prominent figures have also joined the wave of criticism. Cory Liu, a professor at the University of Texas School of Law, pointed to a recent court ruling that found the SEC had overreached its authority by enforcing Nasdaq’s diversity quotas for corporate boards. Liu argued that the SEC should prioritize fair markets instead of pushing identity-based mandates.
Presidential candidate Vivek Ramaswamy suggested the SEC’s repeated legal losses are undermining its credibility, while U.S. Senator Mike Lee stated the agency “cannot be trusted” as an independent regulator.
Market Awaits Pro-Crypto Regulation
Garlinghouse has long been a vocal critic of the SEC, particularly under Gary Gensler’s leadership, which many view as overly aggressive toward the crypto industry. The market is now closely monitoring developments, especially with Gensler set to step down in January. His departure could open the door to a more balanced approach to crypto regulation.
The heightened scrutiny of the SEC’s actions, coupled with mounting criticism from industry leaders, politicians, and legal experts, underscores growing calls for reform. As these events unfold, the crypto market remains hopeful for a more favorable regulatory landscape in the near future.