- Ripple CEO Brad Garlinghouse called Gary Gensler SEC hypocrite.
- Garlinghouse accused the SEC of haphazardly regulating crypto space.
- The SEC intends to amend its motion claiming that multiple altcoins are securities.
The United States Securities and Exchange Commission faces accusations of hypocrisy and haphazard regulation of digital assets under Chair Gary Gensler, particularly in its inconsistent classification of altcoins as securities.
Critics argue this approach fosters confusion within the industry, potentially serving a political agenda rather than adhering to a “faithful allegiance to the law.”
The chief executive of American fintech firm Ripple, Brad Garlinghouse, highlighted the regulator’s hypocrisy in a post on X (formerly Twitter), quoting a filing submitted by the SEC in its lawsuit against Binance, the world’s largest crypto exchange. Garlinghouse added:
“Chair Gensler testifies the rules are clear, yet his SEC can’t figure them out and applies them haphazardly, festering more industry confusion. A political agenda and/or bad faith litigation tactics. Def not a ‘faithful allegiance to the law.”
In a filing, the SEC said it “intends to seek leave” to amend its complaint, wherein the regulator defined cryptocurrencies including SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI as securities. Notably, the agency does not want the court to decide if these altcoins are securities.
Ripple’s Chief Legal Officer Stuart Alderoty said that when the judge in the Binance lawsuit signaled that the ten tokens the SEC mentioned in the lawsuit might not be securities, the agency said “never mind.” However, the same ten digital assets were “left out to dry in the Coinbase suit,” further solidifying claims that the regulator is haphazardly regulating the crypto market.
It is important to note that SEC Chair Gensler is now the enemy number one of the digital asset sector. Republican candidate and crypto favorite Donald Trump recently stated at the 2024 Bitcoin Conference that if elected president, he would ensure that the US is the crypto capital of the planet and the Bitcoin superpower of the world. The billionaire said that on his very first day in office, he will fire Gensler and appoint a new SEC Chairman.
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