Ahmed Ali Ripple CEO Brad Garlinghouse has strongly criticized the U.S. Securities and Exchange Commission (SEC) for its recent lawsuits against major cryptocurrency exchanges, such as Coinbase and Binance. Garlinghouse believes that the SEC’s actions are aimed at diverting attention from the bankruptcy of the FTX exchange. He argues that the SEC’s supposed “pro-innovation” stance is misguided and could hinder innovation in the U.S. crypto industry.
Garlinghouse, the CEO of Ripple, which is responsible for the xrp cryptocurrency asset and various payment and settlement protocols, expressed his dissatisfaction with the SEC’s legal actions against Coinbase and Binance US. He believes that the SEC’s chairman and overall approach are wrong and have the potential to stifle innovation within the country’s cryptocurrency industry.
In response to SEC Chairman Gensler’s comments on the non-compliance of U.S.-based crypto exchanges with securities laws, Garlinghouse stated that Gensler’s “pro-innovation” stance, as he called it, is actually the opposite of what it claims to be. Gensler had mentioned in an interview that the SEC’s actions were “pro-innovation” because trust is essential for functional capital markets.
Coinbase CEO Brian Armstrong and Wyoming Senator Cynthia Lummis have also expressed concerns about how these policies could impact the future of the industry in the United States, potentially driving innovation to other countries.
Garlinghouse further argues that the SEC’s recent lawsuit barrage is intended to divert attention away from other developments in the crypto industry. He suggests that the SEC is throwing lawsuits at the wall in the hope of distracting from its own FTX debacle. Although the SEC charged Sam Bankman-Fried, the former CEO of FTX, for an alleged scheme to defraud equity investors, the agency did not include the company itself in the lawsuit. Binance CEO Changpeng “CZ” Zhao recently highlighted this discrepancy on social media.
Garlinghouse also questions the SEC’s jurisdiction in these matters and describes it as embarrassing to witness an unelected bureaucrat like the SEC chairman struggling to mask the agency’s lack of power, which he desperately craves.
Ripple has been engaged in a legal battle against the SEC since December 2020 when the company and Garlinghouse were charged with conducting an unregistered securities offering worth $1.3 billion.
What are your thoughts on Garlinghouse’s remarks? Share your opinions in the comments section below.
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Frequently Asked Questions (FAQs) about crypto industry innovation
What is Brad Garlinghouse criticizing the SEC for?
Brad Garlinghouse is criticizing the SEC for its recent lawsuits against major cryptocurrency exchanges like Coinbase and Binance. He believes that these actions are diverting attention from the FTX exchange debacle and could stifle innovation in the crypto industry.
What is the stance of the SEC that Garlinghouse disagrees with?
Garlinghouse disagrees with the SEC’s supposed “pro-innovation” stance. He argues that this stance is misleading and could actually hinder innovation in the cryptocurrency industry in the United States.
What did SEC Chairman Gensler say regarding the non-compliance of U.S.-based crypto exchanges?
SEC Chairman Gensler mentioned that U.S.-based crypto exchanges not complying with securities laws hinder trust, and without trust, the capital markets cannot function properly.
How does Garlinghouse view the SEC’s recent lawsuits?
Garlinghouse sees the SEC’s recent lawsuits as an attempt to divert attention away from other developments in the crypto industry, particularly the FTX debacle. He suggests that the SEC is throwing lawsuits at the wall in hopes of distracting from its own issues.
What does Garlinghouse think about the SEC’s jurisdiction?
Garlinghouse challenges the SEC’s jurisdiction in these matters, describing it as embarrassing to witness an unelected bureaucrat like the SEC chairman struggling to mask the agency’s lack of power.
What legal battle is Ripple currently engaged in?
Ripple is currently in a legal battle against the SEC. The SEC charged Ripple and Brad Garlinghouse with conducting a $1.3 billion unregistered securities offering in December 2020.
More about crypto industry innovation
- Brad Garlinghouse criticizes the SEC’s lawsuits
- SEC’s stance on non-compliance of crypto exchanges
- Details on the FTX debacle
- Ripple’s legal battle against the SEC
4 comments
Brad Garlinghouse ain’t holdin’ back! He’s callin’ out the SEC for their lawsuits and accusin’ ’em of tryna distract us from the FTX mess. Innovation in the crypto industry can’t thrive if they keep playin’ these games, ya know?
SEC be messin’ with the wrong CEO! Garlinghouse ain’t buyin’ their so-called “pro-innovation” stance. He’s raisin’ valid concerns ’bout stiflin’ crypto innovation in the US. Let the industry flourish, SEC!
Interesting insights from Garlinghouse. SEC’s actions against Coinbase and Binance got ’em all fired up. The battle between Ripple and SEC ain’t over either. This legal drama’s gonna shape the future of crypto in the US. Buckle up!
Garlinghouse droppin’ truth bombs on the SEC! He’s questionin’ their authority and makin’ ’em squirm. The FTX debacle ain’t goin’ unnoticed. Let’s see if the SEC can handle the heat and step up their game.