Ripple CEO Brad Garlinghouse slammed the US Securities and Exchange Commission (SEC) for its proposal to amend the complaint in a Binance-linked lawsuit. He highlighted the regulator’s conflicting approach to classifying crypto assets.
Garlinghouse called the SEC’s intent to amend its complaint against Binance regarding certain crypto tokens’ security status, more evidence of hypocrisy. His accusations come at a time when Ripple is still fresh off its legal tussle with the financial watchdog over the classification of XRP.
Ripple CEO slams SEC
Brad Garlinghouse, in an X post, stated that SEC chair Gary Gensler testifies that the rules are clear yet the commission is not able to figure them out. He claimed that the commission applies them “haphazardly,” and that it is festering industry confusion.
He suggested that this was a political agenda or bad faith litigation tactics and definitely not a “faithful allegiance to the law”.
The SEC had responded to the court’s minute order seeking to amend its complaint on “Third Party Crypto Asset Securities” in its opposition to Binance’s motion to dismiss. Earlier, the commission had argued that several top cryptocurrencies, including Solana’s (SOL), Cardano’s (ADA), and Polygon’s (MATIC), were securities in the lawsuit.
Garlinghouse gets the support of legal associates
Stuart Alderoty, Chief Legal Officer at Ripple took the toll of the recent filings and pointed out the regulator’s inconsistency. He stated that the SEC did not take action when the judge queried its claim that 10 tokens on Binance are securities. Meanwhile, these tokens were not included in the Coinbase case.
When a judge signals B.S. on the SEC’s claim that 10 tokens on Binance are securities, the SEC says “never mind.” But these tokens are left out to dry in the Coinbase suit. This isn’t how to regulate. https://t.co/xtfLdXWoO8
— Stuart Alderoty (@s_alderoty) July 30, 2024
Attorney John Deaton, amicus curiae in the Ripple vs SEC case, supported Brad Garlinghouse’s comment and stated this is further evidence that the SEC Chair should resign now. He added that in the XRP lawsuit, he was forced to sue the commission and file a Motion to Intervene in order to protect retail investors.
He argued that Gensler and the SEC violated 76 years of established case law as their claims were not supported by law. Deaton asserted that the commission attacked him personally and misled the court. In the end, the judge agreed with him and his 75K clients who were linked with the XRP.
Deaton added that the regulator is now backing off from its claims after costing retail investors huge amounts of money. He claims that the SEC chair has lied under oath at the direction of Senator Elizabeth Warren on more than one occasion.
Attorney Deaton is running in the Massachusetts Senate race against Sen. Elizabeth Warren.
