Ripple CEO Brad Garlinghouse has taken to Twitter to criticize the US Securities and Exchange Commission (SEC) for its alleged “hypocrisy” regarding statements made about the cryptocurrency industry. In a tweet accompanied by a meme from The Office, Garlinghouse expressed his frustration with the SEC’s behavior, particularly its tendency to make public statements without considering them as formal guidance.
Garlinghouse’s tweet read, “Ah the hypocrisy to be an unelected bureaucrat – where you can prognosticate on your bully pulpit at all times (every week a new video or speech!) and then say no one should rely on your statements as guidance…” This criticism aligns with the sentiments expressed by Coinbase’s Chief Legal Officer Paul Grewal, who, on Monday, pointed out that the SEC had clarified that public statements made by its Chair Gary Gensler were not considered formal guidance.
Ah the hypocrisy to be an unelected bureaucrat – where you can prognosticate on your bully pulpit at all times (every week a new video or speech!) and then say no one should rely on your statements as guidance… https://t.co/DGgw3s3Jdt pic.twitter.com/qoLX6VrLHP
— Brad Garlinghouse (@bgarlinghouse) May 16, 2023
Coinbase, a major cryptocurrency exchange, has urged the SEC to provide clearer regulations for the crypto industry in response to its petition submitted in July. However, the SEC filed a court document on Monday opposing Coinbase’s request, claiming that it was not obligated to meet the requirements outlined by the exchange. The SEC argued that Coinbase’s demands for comprehensive reforms and rules within a short timeframe were unreasonable.
Grewal took to Twitter to highlight the significance of the SEC’s court filing, stating, “Today’s filing may be the first time when the SEC has formally explained in court its views on whether and how the SEC should create rules for the crypto industry.” This further indicates the growing tension between regulatory authorities and cryptocurrency platforms.
Ripple has been embroiled in a legal battle with the SEC since 2020, when the agency accused the company, as well as Garlinghouse and co-founder Christian Larsen, of illegally raising $1.3 billion through the sale of XRP. A judge is expected to deliver a decision on the case later this year.
Coinbase, on the other hand, is also facing scrutiny from the SEC, as the agency sent the company a Wells Notice in March. A Wells notice serves as a preliminary indication that the SEC is prepared to recommend formal charges to its commission. Coinbase has argued that the SEC has not fulfilled its legal obligations by providing adequate avenues for registration for companies like itself.
Meanwhile, SEC Chair Gary Gensler has emphasized that existing rules already apply to the regulation of cryptocurrencies. He has characterized the industry as “largely non-compliant,” highlighting the need for increased oversight and regulation.
As the legal battles and regulatory disputes continue to unfold, the future of the cryptocurrency industry hangs in the balance, with industry leaders, regulators, and companies like Ripple and Coinbase at odds over the appropriate framework for crypto regulation.
Read more:
- Ripple Reports Strong Q1 2023 With Total XRP Sales Of $361.06 Million
- Ripple – SEC Lawsuit’s Results Showed A Shift In The Sentiment Of This Class Of Investors Toward XRP
- Ripple Will Spend $200 Million Defending SEC Lawsuit
- US Court Denies SEC’s Motion To Seal Hinman Speech Documents; Ripple Community Celebrates As XRP Price Soars 4.3%