Ripple’s CEO criticized former SEC chairman Jay Clayton’s comments
Ripple CEO Brad Garlinghouse has slammed former US Securities and Exchange Commission (SEC) chairman Jay Clayton's comments about the agency's regulatory practices. Starting in the first quarter of 2023, the SEC has initiated various regulatory measures against crypto exchanges and companies.
In an interview with CNBC on June 29, 2023, Clayton expressed his view that the SEC should only take legal action against certain companies when they have strong legal grounds to do so. He emphasized that regulatory agencies should introduce regulations and legal issues that they believe will successfully withstand judicial review.
Watching this clip makes my blood boil.
The hypocrisy is shocking. @CNBC @SquawkCNBC should be called out for the cruelty.
(For the record, Jay Cloughton filed his case against The Waves, me, and Chris Larson. And he left the building the next day.)
— Brad Garlinghouse (@bgarlinghouse) October 28, 2023
By voting to dismiss the SEC's charges without prejudice, Ripple's CEO has filed a lawsuit against the former SEC chairman that has little chance of succeeding in court. In a December 2020 lawsuit against Ripple, Garlinghouse and Ripple co-founder Christian Larson, the SEC accused the company and two executives of raising more than $1.3 billion in sales of “an unregistered, continuous offering of digital asset securities.” XRP (XRP) token.
Garlinghouse said:
“For the record, Jay Clayton brought the case against Ripple, me and Chris Larson. And the next day they left the building.
Clayton's statements from June 2023 have gained attention in light of recent trials involving Garlinghouse and Larson. As previously reported, the SEC moved to dismiss the lawsuit against the executives in October.
RELATED: Ripple exec and XRP community don't object to SEC Commissioner LBRY's lawsuit
The SEC's action follows Judge Analisa Torres' ruling in July in part in favor of Ripple, stating that retail sales of the XRP token do not meet the legal definition of a security. However, the court ruled that Ripple violated securities laws by selling XRP tokens directly to institutional investors.
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