Ripple CEO Brad Garlinghouse Exposes SEC’s Assault on Cryptocurrency

Ripple CEO Brad Garlinghouse criticizes SEC’s actions, highlighting the paradox of Chair Gensler’s “pro-innovation” stance.

Gary Gensler with an eagle agent having a meeting in a theatre.
Created by Kornelija Poderskytė from DailyCoin
  • The SEC has escalated its crackdown on major cryptocurrency exchanges.
  • Ripple CEO criticizes SEC Chair’s contradictory “pro-innovation stance.”
  • Binance and Coinbase lawsuits are seen as a diversion from FTX mishandling.

The enforcement actions recently undertaken by the US Securities and Exchange Commission (SEC) against prominent cryptocurrency exchanges have garnered significant attention within the crypto space. These actions, which involved filing lawsuits against two major exchanges, Binance and Coinbase, took the industry by surprise, given their global prominence.

According to the SEC, both Binance and Coinbase facilitated the trading of cryptocurrencies that the commission considers securities. The news of these lawsuits echoed when Gary Gensler, the chairman of the SEC, expressed his belief that the United States does not require additional digital currencies.

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Unsurprisingly, influential figures within the crypto community have strongly criticized the regulatory agency for its adversarial stance towards the industry. Ripple CEO Brad Garlinghouse, among others, took to social media to voice his concerns regarding the SEC’s charges. 

Garlinghouse Takes on SEC’s Innovation Facade

In a recent tweet, Garlinghouse highlighted the paradoxical nature of SEC Chair Gary Gensler’s so-called “pro-innovation stance,” emphasizing that it is, in reality, quite the opposite.

Chairman Gensler has faced significant backlash due to his regulatory policies, with allegations suggesting that his approach could impede American innovation and force crypto businesses to relocate outside the United States. In an attempt to counter these criticisms, Gensler claims to be an advocate for innovation.

Furthermore, Garlinghouse asserted that the SEC’s legal actions against Binance and Coinbase might distract from the regulatory agency’s mishandling of the FTX situation. The Ripple CEO argued that Gensler was caught off-guard when the FTX debacle unfolded, despite claiming that the SEC diligently oversees the crypto industry as a vigilant authority.

On the Flipside

  • The SEC’s enforcement actions against Binance and Coinbase signify a step towards stricter regulations, which could potentially enhance investor protection and reduce the risks associated with crypto trading.
  • Gary Gensler’s stance against additional digital currencies may be rooted in concerns regarding the potential proliferation of unregulated cryptocurrencies, which could pose systemic risks to the financial markets.
  • The SEC’s lawsuits against Binance and Coinbase could be seen as a necessary measure to ensure compliance with existing securities laws and prevent potential market manipulation within the crypto industry.

Why This Matters

The recent enforcement actions taken by the SEC coupled with Chair Gary Gensler’s stance on digital currencies, highlight the ongoing regulatory challenges faced by the industry. It raises concerns about the potential impact on innovation, the future of crypto businesses, and the need for clearer regulations in the United States.

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To learn more about the ongoing legal battle between Ripple and the SEC, and John Deaton’s prediction of a 25% chance of an outright win, read here:

Ripple vs. SEC: John Deaton Predicts 25% Chance of Outright Win

To understand why crypto whales are increasingly flocking to stablecoins, delve into the subject here:

Crypto Whales: Why They’re Flocking to Stablecoins

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.