Ripple CEO Brad Garlinghouse recently expressed his displeasure with the US Securities and Exchange Commission (SEC) and its handling of the cryptocurrency industry on Twitter. Garlinghouse criticised the SEC’s “hypocrisy” and questioned the credibility of its statements in a tweet accompanied by an Office meme.
Garlinghouse emphasised the SEC’s role as an unelected bureaucracy that frequently makes public statements and speeches without taking responsibility for their consequences. He drew attention to the SEC’s tendency to guide while questioning the veracity of their own statements.
Coinbase’s Chief Legal Officer, Paul Grewal, expressed similar dissatisfaction with the SEC’s ambiguity. He claimed that the SEC had ruled that public statements by its Chair, Gary Gensler, did not constitute formal guidance. Coinbase petitioned the SEC in July, requesting clearer guidelines for cryptocurrency regulation. On the other hand, the SEC asked a judge to reject Coinbase’s request, claiming that the company had proposed an unreasonably extensive set of reforms in an impractical timeframe.
Grewal saw the SEC’s court filing as a chance for the agency to clarify its position on cryptocurrency industry regulations. Ripple has also been embroiled in a legal battle with the Securities and Exchange Commission (SEC) since 2020, when the agency accused the company, Garlinghouse and co-founder Christian Larsen, of illegally raising $1.3 billion through the sale of XRP. A decision on the case is expected later this year.
After receiving a Wells Notice in March, Coinbase, a well-known cryptocurrency exchange, is also under SEC investigation. This notice indicates that the SEC staff is ready to recommend formal charges to the commission. Coinbase has chastised the SEC for failing to provide a legal registration pathway for companies like its own.
While the SEC believes that existing rules are adequate to regulate the crypto industry, Gensler describes it as “largely non-compliant.” The disagreement between the SEC and industry leaders such as Ripple and Coinbase highlights the ongoing struggle to develop clear and compelling regulations for the cryptocurrency market.
Finally, Ripple CEO Brad Garlinghouse’s and Coinbase’s Paul Grewal’s criticism and frustrations reflect the growing tension between the cryptocurrency industry and the SEC. The future of crypto regulation remains uncertain as legal battles and regulatory debates continue.
