Ripple CEO Challenges SEC

Ripple CEO Brad Garlinghouse took to social media to express his disapproval of recent comments made by SEC Chair Gary Gensler regarding the state of cryptocurrency compliance.

Accusing Gensler of hypocrisy, Garlinghouse referenced the SEC Chair's associations with what he termed:

"The biggest fraud in recent memory."

Garlinghouse further criticised Gensler's leadership, alleging harm to consumers and the undermining of the SEC's integrity while maintaining close ties with Wall Street.

Ripple's Reaction to Gensler's Concerns

This vocal response from Ripple's CEO came after Gensler highlighted widespread noncompliance in the cryptocurrency space.

Gensler expressed concern over the damage to consumer confidence and emphasized the challenges faced by compliant actors due to the actions of non-compliant entities.

In a broader critique of the SEC, Ripple's Chief Legal Officer, Stuart Alderoty, echoed Garlinghouse's sentiments.

Alderoty underscored a perceived pattern of regulatory missteps by the Commission, referencing several court cases where the SEC faced criticism for inconsistent and, at times, arbitrary regulatory approaches.

He specifically pointed to instances where the SEC failed to adhere to legal standards and procedures, including missing deadlines for amending regulations and declining to offer clarity on the classification of syndicated loans.

Rift between Ripple and SEC

The rift between Ripple and the SEC continues to deepen, with the company's leaders raising questions about the regulatory body's approach and decisions.

The cryptocurrency community watches closely as these tensions unfold, impacting the broader landscape of regulatory discussions within the industry.

The outcome, whether in favor of Ripple or the SEC, could establish a legal framework influencing future regulatory actions and shaping compliance expectations for existing and emerging crypto projects