Ripple CEO Brad Garlinghouse has expressed strong criticism towards the U.S. Securities and Exchange Commission (SEC) following the release of the Hinman docs. These internal discussions shed light on the events preceding a notable 2018 speech delivered by William Hinman, the former Director of the SEC’s Division of Corporation Finance. Garlinghouse alleges that Hinman, while serving as a public servant, received substantial payments from his law firm, which had a vested interest in his speech.
In a recent video, Brad Garlinghouse, CEO of Ripple, shared his thoughts on the content of the unsealed Hinman docs. These documents unveil the agency’s internal deliberations leading up to Hinman’s speech in 2018. Garlinghouse emphasized that after seven court orders and considerable legal expenses exceeding a hundred million dollars, the released documents reveal that “senior officials couldn’t agree on the law” and explicitly advised Hinman that his speech would further confuse the public regarding crypto regulations. Garlinghouse goes on to suggest that the worst interpretation is that Hinman deliberately disregarded the law, pointing out the troubling fact that he received millions of dollars in payments from his law firm, which had a vested interest in his speech.
Accusing the SEC of promoting a deceptive “open arms and come in and register” policy, Ripple’s CEO explains that he had met with former SEC Chair Jay Clayton and Hinman, openly addressing all their inquiries and providing complete transparency regarding Ripple’s operations. However, Garlinghouse claims that the SEC took advantage of this openness and turned it against the company.
During his statement, Garlinghouse reveals that neither Clayton nor Hinman ever indicated that XRP, Ripple’s cryptocurrency, was considered a security. Garlinghouse believes that the SEC is actively stifling crypto innovation in the United States by exploiting the lack of regulatory clarity to assert jurisdiction over the entire crypto industry. This aligns with his previous concerns about the potential consequences of driving the crypto industry out of the country and the subsequent challenges of bringing it back in the future, a sentiment also shared by Brian Armstrong, CEO of Coinbase, another major U.S.-based cryptocurrency exchange facing SEC legal action for allegedly operating as an unregistered securities brokerage.
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Frequently Asked Questions (FAQs) about Ripple CEO Brad Garlinghouse, SEC, unsealed documents, Hinman, criticism
What are the Hinman docs and why are they significant?
The Hinman docs refer to a set of internal discussions within the U.S. Securities and Exchange Commission (SEC) prior to a 2018 speech delivered by former SEC official William Hinman. These documents were recently unsealed and provide insights into the agency’s deliberations on cryptocurrency regulations. They are significant because they shed light on the SEC’s stance and decision-making process regarding cryptocurrencies, particularly their classification as securities.
What allegations did Ripple CEO Brad Garlinghouse make about William Hinman?
Brad Garlinghouse, the CEO of Ripple, alleged that William Hinman, while serving as a public servant, received millions of dollars from his law firm. Garlinghouse claimed that Hinman’s law firm had a vested interest in Hinman’s speech and the outcome of the regulatory discussions. These allegations suggest potential financial ties and raise questions about the impartiality of Hinman’s actions and decisions.
What is Ripple CEO’s criticism of the SEC’s enforcement approach?
Ripple CEO Brad Garlinghouse criticized the U.S. Securities and Exchange Commission’s enforcement approach in relation to the Hinman docs. He claimed that the internal discussions reflected a lack of agreement among senior officials on cryptocurrency regulations, leading to confusion among the public. Garlinghouse also accused the SEC of exploiting the lack of regulatory clarity to exert jurisdiction over the entire crypto industry and stifle innovation.
How does Ripple’s CEO believe the SEC is impacting the crypto industry?
According to Brad Garlinghouse, the SEC’s actions are detrimental to the crypto industry. He believes that the SEC’s lack of regulatory clarity and alleged efforts to suppress innovation will drive crypto businesses out of the United States. Garlinghouse warns that this could have long-term consequences, as it may be challenging and costly to repatriate the industry in the future. He shares concerns about the potential loss of crypto innovation and the negative impact on the country’s competitiveness in the global crypto market.
What is the SEC’s “open arms and come in and register” policy?
The “open arms and come in and register” policy mentioned by Ripple’s CEO refers to a purportedly deceptive approach attributed to the SEC. Garlinghouse alleges that the SEC presented an outwardly welcoming stance towards crypto companies, encouraging them to register their offerings and operations with the agency. However, he claims that the SEC took advantage of companies’ openness during regulatory discussions and later used the information against them, creating an environment of uncertainty and hindering the industry’s progress.
More about Ripple CEO Brad Garlinghouse, SEC, unsealed documents, Hinman, criticism
- Hinman Docs: Unsealed Internal Discussions
- SEC Official William Hinman
- Ripple CEO Brad Garlinghouse
- U.S. Securities and Exchange Commission (SEC)
- Cryptocurrency Regulations
- Ripple (XRP)
- SEC Enforcement Approach
- Impact of SEC Actions on Crypto Industry
- Challenges of Repatriating Crypto Industry
- Global Crypto Market Competitiveness