Brad Garlinghouse, the CEO of Ripple, has attacked the U.S. Securities and Exchange Commission (SEC) and its current chair, Gary Gensler, over the handling of cryptocurrency regulation.
Gralinghouse, who made the sentiments in reaction to the unsealing of the Hinman speech documents in the ongoing Ripple vs. SEC case, termed Gensler as a ‘bureaucrat’ who was weaponizing regulation, he said in a Twitter video on June 16.
According to Garlinghouse, Ripple’s case is emblematic of the SEC’s broader crackdown on the crypto industry. He accused the regulatory body of deliberately fostering confusion about regulations and using this ambiguity to enforce its will selectively.
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“The SEC is looking to kill crypto innovation in the United States and its current chair. An unelected bureaucrat, I might add, is weaponizing the lack of regulatory clarity to exert jurisdiction over the entire crypto space. This is the definition of putting politics over people. It’s the pursuit of power over sound policy,” he said.
SEC’s bullying attempts
He alleged that the SEC has attempted to bully them into conforming without the existence of a policy, but they had the resources to fight back.
“Now we can all see what they fought so hard to hide: they knowingly create confusion about the rules, and they use that confusion to regulate through enforcement. That’s bad faith,” he added.
Furthermore, the executive questioned why the SEC charged Ripple despite the two agencies engaging previously. Garlinghouse noted that in its meetings, Ripple provided complete transparency, answering all the SEC’s questions.
“We answered every question they had, and not once did they suggest to me that XRP was a security. We were fully transparent, not knowing they would then use this information against us,” he added.
Hinman speech documents
On the release of Hinman’s speech, Garlinghouse emphasized the significance of the documents, drawing attention to the indications of perceived hypocrisy within the SEC. Furthermore, he made additional claims suggesting that the agency’s intentions revolve around stifling crypto innovation in the United States.
Garlinghouse suggested that Hinman deliberately ignored the law and attempted to create new laws, a role reserved for Congress alone.
“These documents show that senior officials at the SEC couldn’t agree on the law and told Bill Hinman directly he would confuse the public even more about the rules for crypto. At worst, they show that Hinman deliberately ignored the law and he tried to create new laws, something only Congress can do,” he noted.
Garlinghouse concluded by emphasizing the need for clarity and a fair regulatory framework in cryptocurrency. He thanked his colleagues, friends, family, and the Ripple community for their support throughout the legal battle.
