Ripple CEO Brad Garlinghouse is calling out the US Securities and Exchange Commission (SEC), saying the regulator has essentially weaponized a lack of regulatory clarity in crypto markets against the industry’s firms.
In a video statement on Twitter, Garlinghouse comments on the recent revelation of internal emails related to a 2018 speech by former SEC official William Hinman, in which he stated in his official capacity that he believed that both Bitcoin (BTC) and Ethereum (ETH) no collateral.
Garling House say the emails show that either SEC officials can’t agree on how to determine whether a crypto asset is a security, and therefore the regulator’s lawsuit against Ripple is not legitimate, or that Hinman deliberately flouted the law .
“Hinman’s speech created new factors in determining whether a token becomes decentralized enough to no longer be considered a security. At best, these documents show that senior SEC officials could not agree on the law, directly telling Bill Hinman that he would confuse the public even more about the rules of crypto.
At worst, they show that Hinman deliberately flouted the law and tried to make new laws, something only Congress can do. While a public servant, Hinman received millions of dollars in payments from his law firm, which was part of an alliance with others who had a vested interest in this speech.
This speech isn’t about a token or a blockchain, this is about showing the extent to which the SEC has relentlessly pursued enforcement action against crypto players as they profess open arms and call for ‘come in and register’ as they go through all that time were lying their so-called guidance.”
In late 2020, the SEC sued Ripple for allegedly selling XRP as an unregistered security. Garlinghouse recently said he expected the lawsuit to be concluded sooner rather than later.
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Featured image: Shutterstock/Mia Stendal