In a scathing criticism, Brad Garlinghouse, the Chief Executive Officer (CEO) of financial giant, Ripple, has publicly condemned the United States Securities and Exchange Commission (SEC) over its sudden retracement from the legal tussle with Binance, the world’s largest cryptocurrency exchange.
The Ripple Chief in his criticism of the SEC’s strategy charged that the regulatory watchdog has been inconsistent and vague in its enforcement operations against leading digital assets platforms.
Ripple CEO Calls The US SEC Hypocrites
On Tuesday, the US SEC withdrew its request that the court categorize tokens such as Solana (SOL), Cardano (ADA), and Polygon (MATIC) as securities in the lawsuit against Binance, which the crypto community has considered a display of inconsistency and lack of transparency from the regulatory watchdog.
According to the filing, the defendants were notified by the SEC of their intention to seek an amendment to their complaint, particularly regarding the Third Party Crypto Asset Securities.
The filing read:
The SEC informed Defendants that it intends to seek to amend its Complaint, including with respect to the “Third Party Crypto Asset Securities” as defined in the SEC’s Omnibus Opposition to Defendants’ Motion to Dismiss, Dkt. No. 172, obviating the need for the Court to issue a ruling as to the sufficiency of the allegations as to those tokens at this time.
After meeting and conferring, Binance and the SEC approved the Commission’s proposal to have a briefing on a motion to amend and pleadings. With the SEC retracing its request, it simply implies that the court will no longer classify the tokens involved as securities.
Expressing his displeasure toward the move, Ripple CEO, Brad Garlinghouse has stated that the development demonstrates more evidence of the regulatory body’s hypocrisy, calling for a transparent and more predictable regulatory framework.
Garlinghouse further criticized the agency for its lack of understanding toward its own alleged clear rules under Gary Gensler but applied them arbitrarily, which exacerbated confusion in the industry. “A political agenda and bad faith litigation tactics. Definitely not a faithful allegiance to the law,” the Ripple chief added.
Gensler’s SEC Responsible For Billion Of Dollars Damages
Brad Garlinghouse’s critics have garnered support from major figures such as legal expert John E. Deaton. “As Garlinghouse points out, if the rules were so clear, as stated by Gensler, why are his lawyers backing off those very clear rules?” Deaton stated.
The expert considers the SEC’s withdrawal from the Binance case as additional evidence that Gensler needs to step down as head of the Commission, drawing attention to his involvement in the Ripple case.
Deaton claims the SEC under Gensler has caused billions of dollars in damages to retail investors due to some of its ludicrous claims. He also noted that on multiple occasions, Gensler has lied under oath on US Senator Elizabeth Warren’s orders, suggesting an immediate resignation of the chairman.