Brad Garlinghouse, CEO of Ripple, took to Twitter to express his frustration with the US Securities and Exchange Commission (SEC) for its “hypocrisy” in public statements about the cryptocurrency industry. Using a meme from The Office, Garlinghouse criticized the SEC for issuing statements from its “bully pulpit” without providing clear guidance to the industry. He was reacting to a statement from the SEC that public statements made by its Chair Gary Gensler are not formal guidance. Garlinghouse’s tweet followed a similar outburst from Coinbase’s Chief Legal Officer Paul Grewal, who called out the SEC for failing to provide clear guidelines on crypto regulation.
Coinbase has been asking the SEC to respond to its July petition for clearer crypto regulation guidelines. However, the SEC asked a judge to reject Coinbase’s request on Monday, saying that the firm had called for a complex set of reforms and rules in an unreasonably short amount of time. Grewal responded by tweeting that this was the first time the SEC had formally explained its views on whether and how it should create rules for the crypto industry.
Ripple has been involved in a long-standing dispute with the SEC since 2020, when the agency accused the company, as well as Garlinghouse and co-founder Christian Larsen, of raising $1.3 billion through the sale of XRP. A decision is expected from a judge later this year. Meanwhile, Coinbase is also battling the SEC after the agency sent it a Wells Notice in March. Coinbase has said that the agency has not complied with the law by providing companies like it a way to register.
Gensler has said that rules already exist to regulate crypto and has called the industry “largely non-compliant.” However, he has also acknowledged that the SEC needs to provide clear guidance to the industry. The SEC’s lack of clear guidelines has frustrated many in the crypto industry, who argue that it is hindering innovation and growth. The SEC’s stance has also led to criticism from politicians, who argue that the agency is stifling innovation and driving the crypto industry overseas.
In conclusion, Ripple CEO Brad Garlinghouse’s recent criticism of the SEC’s “hypocrisy” in public statements about the cryptocurrency industry reflects the frustration felt by many in the crypto industry. The lack of clear guidelines from the SEC has hindered innovation and growth, and has led to criticism from politicians as well as industry leaders like Garlinghouse and Grewal. While Gensler has acknowledged the need for clear guidance, the SEC’s recent actions suggest that there is still a long way to go before the crypto industry can operate with confidence and clarity.