Ripple CEO Criticizes SEC’s Inconsistent Crypto Regulations

The CEO of Ripple, Brad Garlinghouse, has harshly criticized the Securities and Exchange Commission (SEC) of the United States for its uneven enforcement of laws pertaining to the cryptocurrency sector. This criticism comes after the SEC declared that it will modify its lawsuit against Binance to take into account the security standing of some cryptocurrency coins.

The defendants, Changpeng Zhao (CZ), Binance Holdings Ltd., BAM Trading Services Inc., and BAM Management US Holdings Inc., filed a joint response to the court order on Tuesday together with the SEC. With regard to “Third Party Crypto Asset Securities,” the SEC announced that it intended to amend its complaint, having previously categorized a number of cryptocurrency assets as securities.

Ripple CEO’s Call for Clear Regulations

Garlinghouse highlighted the contradictions between SEC Chair Gary Gensler’s public statements and the agency’s actual actions. Using the social media platform X, he pointed out the SEC’s inconsistent regulatory practices, stating: “More evidence of SEC hypocrisy. Chair Gensler testified the rules are clear, yet his SEC can’t figure them out and applies them haphazardly, festering more industry confusion.”

He further criticized the SEC, saying, “A political agenda and/or bad faith litigation tactics. Definitely not a ‘faithful allegiance to the law.’”

Garlinghouse’s comments reflect a growing frustration within the cryptocurrency industry over regulatory uncertainty. Many industry leaders believe the SEC’s unclear guidelines and unpredictable actions hinder progress and foster distrust.

Under Garlinghouse’s direction, Ripple has persistently advocated for transparent and unambiguous laws to foster business expansion and innovation. In order to maintain compliance in the constantly changing cryptocurrency world, the organization has actively pursued regulatory clarification. A historic decision about whether XRP qualifies as a security was reached in July 2023 as a result of Ripple and the SEC’s court feud.

Garlinghouse’s recent comments highlight how urgently uniform and open laws are needed to support the growth of the bitcoin market. He contends that in the absence of clear regulations, challenges would persist in the industry, ultimately impeding innovation and expansion. The continuous legal battles and unclear regulations are a wake-up call for clearer rules that can offer a solid basis for cryptocurrencies in the future.