In a video posted to Twitter, Ripple CEO Brad Garlinghouse opined that the U.S. financial watchdog acted in “bad faith, plain and simple.” He warned that it is only the beginning of the battle for “so many other” crypto firms.
Ripple CEO Brad Garlinghouse has warned that even though Ripple’s legal battle against the United States financial watchdog is coming “to a close,” it is only the beginning of a larger battle for the industry, and the fight for regulatory clarity “has to continue.’
Following the Hinman Documents being unsealed on June 13 as part of the ongoing lawsuit between Ripple and the United States Securities and Exchange Commission (SEC), Garlinghouse published a video on Twitter to discuss the lawsuit’s timeline and express his frustration with the SEC.
Published on June 17, Garlinghouse said in the video that the unsealing of the Hinman documents suggest that the SEC “knowingly created confusion about the rules, and they used that confusion through enforcement.”
Trying something new – some thoughts from me on the events (specifically the release of the Hinman documents) of this week. For me, this has all had a personal bent to it – and felt like it warranted some personal comments. pic.twitter.com/k4dYeQGhsN
— Brad Garlinghouse (@bgarlinghouse) June 16, 2023
In his remarks, Garlinghouse strongly criticized the SEC actions, describing them as a clear case “bad faith, plain and simple.” He reiterated the unfortunate timing of the lawsuit being initially filed in December 2020, just days before Christmas, as a “very grinch-like touch.”’
He further argued that the SEC is “looking to kill” innovation and the cryptocurrency industry in the U.S.
“This is the definition of putting politics over people […] and the pursuit of power over sound policy” he stated.
Related: Ripple welcomes MiCA regulation as US lawsuit highlights lack of clarity
Garlinghouse explained that prior to the “every question [the SEC] had, and not once did they suggest to me that XRP was a security.”
Garlinghouse argued that the Hinman speech itself isn’t about “any one token or any one blockchain,” but more so the overall stance that the SEC has towards 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 SEC senior officials “couldn’t agree” on the law and told Bill Hinman directly that “he would confuse the public even more about the rules for crypto.”
Cointelegraph reported on June 13 that notes in the revealed documents suggested that the editors were concerned that Hinman stating Ether is not a security, may make it “difficult for the agency to take a different position on Ether in the future.”
What’s most important is that it’s truly the first time the SEC was forced to be transparent about their lack of internal coherence or faithful application of the law, acknowledging they may not have the jurisdiction to fill the “regulatory gap” over crypto at all.
— Brad Garlinghouse (@bgarlinghouse) June 16, 2023
However, Garlinghouse noted that “at worst” the documents showed that Hinman “deliberately ignored the law” and tried to “create new laws,” emphasizing that only Congress has power to do that.
