Ripple CEO Brad Garlinghouse Criticizes Ex-SEC Chairman Jay Clayton's Regulatory Views following Lawsuit Dismissal
Summary:
Ripple's CEO, Brad Garlinghouse, critiqued the former SEC Chairman, Jay Clayton, for his views on SEC's regulatory approach. Garlinghouse noted the irony of Clayton's suggestions that the SEC only initiate legal action on strong legal grounds, recalling the shaky lawsuit Clayton himself launched against Ripple, Garlinghouse, and Chris Larsen. These comments have come under the spotlight following recent legal developments which saw the charges against the Ripple executives dropped by the SEC.
Brad Garlinghouse, the top executive at Ripple, has openly expressed his disapproval of the comments made by the former Securities Exchange Commission (SEC) Chairman, Jay Clayton, pertaining to the SEC's approach to regulation. Following Clayton's interview with CNBC on June 29, 2023, where he stated that the SEC should only take legal action against specific firms if there is a substantial legal basis, the SEC has commenced several regulatory procedures against cryptocurrency companies and exchanges starting from the first three months of 2023.
Deeply incensed by Clayton's remarks, Garlinghouse reminded his audience of Clayton's hypocritical behavior as the previous chair of the SEC by filing a lawsuit against Ripple, himself, and Chris Larsen, which didn't stand a strong chance in court. This discussion comes amidst recent events where in December 2020, the SEC accused Garlinghouse and Larsen of launching an "unregistered, ongoing digital asset securities offering," which allegedly raised over $1.3 billion.
Garlinghouse stated, "Let it be known, Jay Clayton initiated the lawsuit against Ripple, myself, and Chris Larsen and exited the premises the following day." Clayton's commentary from June 2023 has been the center of attention, particularly in light of recent evolutions in the lawsuits concerning Garlinghouse and Chris Larsen, the founder of Ripple.
It's notable that the charges against the executives, issued just days before Clayton's term as SEC Chair concluded and much ahead of the anticipated termination date in June 2021, were dismissed by the US SEC. In line with this, Judge Analisa Torres ruled in July 2023 that selling XRP in secondary markets to individual investors does not constitute an investment contract, leading to the recent absolution of the two Ripple executives.
Published At
10/29/2023 8:02:20 AM
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