Ripple CEO Urges Sustained Fight to Deliver Regulatory Clarity for Crypto
Ripple chief executive Brad Garlinghouse rebuked the US financial watchdog in a video conveyed via Twitter for acting in bad faith. He lauded the defense that Ripple Labs’ legal team lodged against the allegations by US Securities and Exchange Commission (SEC).
Is SEC Gradually Maiming the US Crypto Industry?
Garlinghouse indicated that the case against SEC is closer to its conclusion. He is optimistic that Ripple’s stance will spark a larger battle that crypto industry participants will embrace to deliver regulatory clarity.
The pronouncement by Ripple Labs’ chief comes days after the June 13 unsealing of the Hinman documents. The executive lauded the move to reveal the content of Hinman documents. He published the video outlining the lengthy timeline the lawsuit took and the resulting frustration imposed by the SEC.
Garlinghouse leveraged the Saturday, June 17 video to emphasize that Hinman’s document suggestions confirm that SEC’s executives knowingly brought the confusion concerning rules. He decried that SEC relied upon the confusion in their enforcement actions against the crypto operators.
SEC Accused of Pursuing Power Rather than Sound Policy
Garlinghouse remarks criticize the securities watchdog as motivated by bad faith and simplicity. He considers the attitude as replicated since the onset of the SEC lawsuit against Ripple Labs.
With the case filed in December 2020, he perceives such a grinch-like touch to sue the firm days to Christmas. Garlinghouse portrays the move as prioritizing politics over individuals pursuing power rather than sound policy.
Garlinghouse regrets the conduct by SEC to overlook the explanation issued by Ripple Labs before filing the lawsuit. Despite responding to the questions posed by SEC, the agency never illustrated they considered XRP security.
Ripple Labs’ chief laments that SEC enforcement actions are designed to mum the innovation. He disapproves of the move by the SEC as it threatens to erode the US crypto industry. He argues that Hinman’s speech hardly involved a single token or blockchain. Instead, it affirmed SEC’s overall stance towards the digital asset industry.
Hinman Overlooked Dissent by Senior SEC Executives Warning Against Confusing Stance
Ripple head suggests that the stance adopted by SEC portrays the extent the Garry Gensler-led agency relentlessly enforces actions targeting crippling the crypto players. He downplays the open arms gesture and invites crypto firms to register as fake and deceptive in the so-called guidance.
Garlinghouse outlined that the Hinman documents illustrate the disagreement among the SEC’s senior officials on enforcing the law. He observes that an executive warned Bill Hinman that his draft speech would trigger confusion concerning the crypto rules.
An in-depth scrutiny conducted on June 13 pointed out that the document content captures senior executives’ concerns that Hinman classifying Ether as sufficiently decentralized to be considered a security. The dissenting executives warned Hinman that his speech would make it challenging for the agency to assume a different position on Ether.
Unite and Sustain Fight for Regulatory Clarity
Garlinghouse perceiving the existence of dissent in the unsealed documents demonstrates Hinman deliberate ignorance of the law and enshrined provisions to formulate new enforcement guidelines. The Ripple Labs chief rallies the digital assets industry to collaborate in the quest for regulatory clarity, warning that SEC could enforce action that will rattle other firms in the future.
The Ripple Labs boss indicated that while their lawsuit is approaching the tail end, others are beginning their defensive lines and need unity of direction to seek clarity.
Garlinghouse’s calls for the sustained quest for regulatory clarity come days after the SEC sued the Binance crypto exchange, claiming it offered unregistered securities and commingled customers’ funds. The regulator would further rattle the crypto industry by suing the second-largest exchange Coinbase on similar grounds.
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