Brad Garlinghouse : Ripple Case Approaches Conclusion, but the Pursuit for Clarity Must Persist

Brad Garlinghouse: Ripple Lawsuit Nearing Conclusion, but Industry’s Pursuit for Regulatory Clarity Must Persist

Ripple CEO Brad Garlinghouse has cautioned that while Ripple’s legal battle with the United States Securities and Exchange Commission (SEC) is nearing its end, it marks just the beginning of a broader fight for the industry and the ongoing pursuit for regulatory clarity.

In response to the unsealing of the Hinman Documents on June 13, as part of Ripple’s ongoing lawsuit against the SEC, Garlinghouse took to Twitter to share a video discussing the lawsuit’s timeline and expressing his frustration with the agency.

During the June 17 video, Garlinghouse highlighted that the Hinman documents suggest that the SEC “knowingly created confusion about the rules, and they used that confusion through enforcement.”

Garlinghouse strongly criticized the SEC’s actions, characterizing them as a clear case of “bad faith, plain and simple.” He believed this attitude was prevalent from the outset of the lawsuit, which was initially filed in December 2020, describing the timing of the case filing, just “days before Christmas,” as a “very grinch-like touch.”

“This is the definition of putting politics over people […] and the pursuit of power over sound policy,” he stated.

Garlinghouse explained that prior to the lawsuit, he had answered every question the SEC had, and at no point was it suggested to him that XRP was considered a security.

He believed that the SEC was “looking to kill” innovation and the cryptocurrency industry in the United States, asserting that the Hinman speech is not about “any one token or any one blockchain,” but rather the overall stance that the SEC has taken toward the crypto industry.

“This is about showing the extent to which the SEC has relentlessly enforced action against crypto players, while professing fake open arms and calls to come in and register, all the while lying about their so-called guidance.”

Garlinghouse further explained that, at best, the documents suggest that senior SEC officials “couldn’t agree” on the law and directly told Bill Hinman that his statements would “confuse the public even more about the rules for crypto.”

On June 13, it was reported that notes in the revealed documents indicated concerns among the editors that Hinman stating Ether is not a security might make it “difficult for the agency to take a different position on Ether in the future.”

However, Garlinghouse stated that, at worst, the documents demonstrated that Hinman “deliberately ignored the law” and attempted to “create new laws.”

He emphasized the importance of industry collaboration, as the SEC could take action against more crypto firms in the future.

“As our lawsuit comes to a close, for so many others, it’s just starting, so the fight for clarity has to continue,” he concluded.

These remarks come after the SEC filed a lawsuit against crypto exchange Binance on June 5, alleging the offering of unregistered securities. The regulator took similar action against Coinbase the following day.

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