News

October 31, 2023

Ripple CEO Accuses Former SEC Chairman of Hypocrisy in High-Profile Lawsuit

Natasha Fernandez
Written byNatasha FernandezWriter
Researched byNikos PapadopoulosResearcher

Introduction

Ripple CEO Brad Garlinghouse has expressed his frustration with former SEC Chairman Jay Clayton, accusing him of hypocrisy in discussions surrounding corporate litigation and the role of the agency. Garlinghouse recalls that the lawsuit Ripple faced for nearly three years was initiated by Clayton himself.

Ripple CEO Accuses Former SEC Chairman of Hypocrisy in High-Profile Lawsuit

Concerns Raised

One of the main concerns that angered Garlinghouse was the timing of Clayton's departure from the SEC, which occurred just days after the Ripple lawsuit was filed. In a CNBC interview, Clayton criticized current SEC Chairman Gary Gensler for alleged abuse of power in the agency's enforcement actions against crypto firms.

SEC's Actions Against Crypto Firms

Under Gensler's leadership, the SEC has taken legal action against several crypto firms. This includes suing Kraken Exchange for its staking program, resulting in a $30 million settlement. Coinbase Exchange and Binance have also faced scrutiny from the regulator for facilitating the trading of unregistered crypto securities, such as Cardano, Solana, Filecoin, and Decentraland.

Ripple Lawsuit: A High-Profile Case

The lawsuit filed against Ripple Labs by Clayton is considered one of the most high-profile legal battles in the crypto ecosystem in recent years. However, in July, Judge Analisa Torres ruled that the programmatic sales of XRP do not constitute an investment contract, marking a significant win for Ripple. Additionally, the SEC dropped the aspect of the lawsuit that involved Garlinghouse and Ripple founder Chris Larsen.

Precedent Set

Experts believe that the Ripple vs SEC lawsuit has set a positive precedent for other legal cases in the industry. While there are still institutional aspects of the case to be resolved in the coming weeks, there is hope that Coinbase and Binance can benefit from the ruling in the Ripple case.

About the author
Natasha Fernandez
Natasha Fernandez
About

Natasha "CryptoQueen" Fernandez bridges the gap between blockchain buzz and casino charisma. From New Zealand's serene landscapes to the volatile world of crypto, she's making waves in the online gaming sphere. With CryptoCasinoRank, she paints a future where chips meet chains seamlessly.

Send mail
More posts by Natasha Fernandez

Latest news

Shibarium: Thriving Community, Impressive Growth, and Increased SHIB Burn Rate
2024-02-16

Shibarium: Thriving Community, Impressive Growth, and Increased SHIB Burn Rate

News