The post Ripple CEO Brad Garlinghouse Criticizes SEC’s Inconsistent, Confusing Regulatory Practices appeared first on Coinpedia Fintech News
Brad Garlinghouse, the Ripple CEO has criticised the US SEC over hypocrisy in handling crypto regulations. The remarks were made amidst the recent events in the SEC’s lawsuit against Binance where the regulatory body wanted to alter the initial complaint.
On Tuesday, the SEC and the defendants — Binance Holdings Ltd., BAM Trading Services Inc., BAM Management US Holdings Inc., and changpeng zhao
changpeng zhao
Changpeng Zhao is the Founder and Chief Executive Officer at Binance.His contribution to the enhancement of Binance made the platform world’s largest cryptocurrency exchange since its inception in 2017. Zhao launched the blockchain network Binance Smart Chain which has made a remarkable contribution to the development of the decentralized finance ecosystem. Whereas in 2019, he launched Binance’s US affiliate, Binance.US.
He is commonly known as CZ, a Chinese-Canadian Business Executive who has been ranked 113th richest in the globe as of 2022. In the past, he founded Fusion Systems, a trading system for brokers famous for some of the fastest high-frequency trading systems for brokers. Zhao has served as a member of the team that developed Blockchain.info and played the role of Chief Technology Officer of OKCoin, a secure cryptocurrency exchange platform for Bitcoin, Ethereum, Dogecoin, and other crypto assets.
EntrepreneurInvestorChief Executive Officer
submitted a joint response to the court’s earlier order. The SEC announced its intention to amend its complaint to address issues concerning “Third Party Crypto Asset Securities,” having previously classified several crypto assets as securities.
SEC’s Inconsistent, Confusing Regulatory Practises
Garlinghouse criticized the SEC over inconsistent and confusing regulatory practices and mentioned the SEC’s hypocritical approach noting that the SEC Chair Gary Gensler said that the rules are clear, but the SEC does not appear to be able to enforce them consistently.
Garlinghouse highlighted the contradiction between SEC Chair gary gensler
gary gensler
Gary Gensler is an enthusiastic leader and the current chair of the U.S. Securities and Exchange Commission (SEC). He has the extreme experience that spans wall street, government regulation, and an angel teaching about cryptocurrencies and blockchain at MIT. He announced several initiatives to enhance investor protections in the $2 trillion cryptocurrency market. He previously led the Biden-Harris transition’s federal reserve, Banking, and securities regulation agency review team.
He was awarded Treasury’s highest honor, the Alexander Hamilton Award, and also was a recipient of the 2014 Frankel Fiduciary Prize. He was born on October 18, 1957, into a Jewish family, in Baltimore, Maryland. Graduated from the University of Pennsylvania, earning a Master’s degree in Business Administration. Additionally, he is also a professor at the MIT Sloan School of management. He has served in various governmental roles since the 1990s, such as the treasury department, Sarbanes-Oxley, CFTC, Swaps, Enforcement, Libor investigation, Maryland Financial Consumer Protection Commission, Securities, and Exchange Commission.
Gary Gensler will probably keep on filling in as seat of the SEC until 2026, accepting his renunciation. He has expressed his desires to present crypto-related approach changes later on that include token commitments, decentralized finance, stablecoins, guardianship, exchange-traded resources, and advancing stages. A few officials as well as his kindred SEC magistrates have scrutinized Gensler for not giving adequate administrative direction on crypto, possibly prompting a standoff between Congress and the association.
The SEC, CFTC, and Financial Crimes Enforcement Network handle advanced resource guidelines in the U.S., however, each with various jurisdictional cases, bringing about an interwoven methodology that crypto firms should explore to work legitimately. Whether 2022 will see a more clear way for organizations in the crypto space is questionable, yet the cosmetics of the SEC’s initiative will fundamentally change following the takeoff of chief Elad Roisman in the first month of the year. Chief Allison Lee’s term is likewise set to terminate in June 2022.
Chairman
statements and the agency’s actions. In a post on X, he stated- “A political agenda and/or bad faith litigation tactics. Definitely not a ‘faithful allegiance to the law.”
This action by the SEC was in an attempt to prevent a courtroom ruling on whether SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI are securities under the Howey Test.
The SEC’s filing noted that it plans to move to alter the complaint to address “Third Party Crypto Asset Securities” concerns so as not to necessitate an immediate court ruling on the matter. Binance pointed out that the SEC’s decision to amend the complaint indicates that the possible changes are not limited to the tokens in the case.
The Growing Regulatory Uncertainty!
Garlinghouse’s comments highlight the growing frustration in the cryptocurrency industry over regulatory uncertainty.
The Ripple CEO has consistently stressed the urgent need for consistent and transparent regulations to support industry growth and innovation. The company’s legal battle with the SEC, focusing on whether XRP is a security, led to a landmark ruling in July 2023. Other companies, including Coinbase, have also been actively striving for regulatory clarity to create a more stable and predictable environment for the crypto industry.
SEC’s Actions Sparks Debate Amongst Legal Experts
Top legal experts have also voiced their opinions over the SEC’s recent actions. Ripple’s CLO Stuart Alderoty pointed out that this move leaves the tokens vulnerable in other cases. He noted that the agency cannot disregard these tokens in one case while pursuing them in another. Jake Chervinsky, CLO at Variant Fund, also mirrored this sentiment and sees SEC’s move as a litigation tactic, and not a policy shift.
Also Read: Ripple News: Why is XRP Price Up Today?
The post Ripple CEO Brad Garlinghouse Criticizes SEC’s Inconsistent, Confusing Regulatory Practices appeared first on Coinpedia Fintech News
Brad Garlinghouse, the Ripple CEO has criticised the US SEC over hypocrisy in handling crypto regulations. The remarks were made amidst the recent events in the SEC’s lawsuit against Binance where the regulatory body wanted to alter the initial complaint. On Tuesday, the SEC and the defendants — Binance Holdings Ltd., BAM Trading Services Inc., … Read MoreNews, Binance, Crypto news, Crypto Regulations, SEC
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