Bad Faith and Broken Policy, Ripple CEO Criticizes SEC

In a recent public outcry, Brad Garlinghouse, the Chief Executive Officer of Ripple, shed light on what he describes as ‘bad faith’ actions from the United States Securities and Exchange Commission (SEC). His sentiments were expressed in a video shared on his Twitter account, adding to the ongoing controversy between Ripple and the SEC.

This is the definition of putting politics over people… and the pursuit of power over sound policy.

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Garlinghouse’s forewarnings hint at an industry-wide battle ensuing once Ripple’s current legal wrangling with the SEC wraps up. He emphasizes the need to continue the fight for regulatory transparency even after their lawsuit concludes. This battle, according to him, extends beyond the confines of Ripple and encapsulates the broader crypto industry.

The so-called Hinman documents, unveiled on June 13, sparked Garlinghouse’s public critique. These documents were part of the lawsuit involving Ripple and the SEC. Garlinghouse used his video message to express dissatisfaction with the SEC’s actions, accusing the commission of deliberately creating uncertainty.

An Alleged Breach of Good Faith by the SEC

“The SEC knowingly created confusion about the rules, and they used that confusion through enforcement,” Garlinghouse opined in his video post. He minced no words in describing the SEC’s behavior as nothing short of ‘bad faith.’

The Ripple CEO went on to express his belief that the SEC displayed this demeanor from the inception of the lawsuit against Ripple, filed in December 2020. He characterized the timing of the lawsuit, filed just days before Christmas, as a “very grinch-like touch.”

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

Further in his discourse, Garlinghouse accused the SEC of attempting to stifle innovation and growth within the cryptocurrency industry in the U.S. He argued that the issue extends beyond a specific token or blockchain, focusing more on the SEC’s overarching approach towards the crypto industry.

The CEO critiqued the SEC’s actions as a strategy to suppress crypto players while pretending to invite them to register. He characterized the SEC’s guidance as dishonest and deceptive.

Garlinghouse concluded his critique by stating, “at best,” the documents suggest that SEC senior officials “couldn’t agree” on the law. He accused them of creating more confusion about crypto regulations.