Ripple CEO Brad Garlinghouse: SEC is Throwing Lawsuits to Distract from FTX Debacle

The United States Securities and Exchange Commission’s (SEC) latest move to file lawsuits against Coinbase and Binance, notwithstanding the lingering battle between the regulatory body and Ripple, has become a significant talking point in the crypto space.

It is no longer news that the SEC has sued two of the world’s largest crypto exchanges, with claims that both platforms facilitated the trading of several crypto projects like BNB, BUSD, SOL, FIL, ADA, etc, which the regulatory body tagged as security assets.

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In one of the most recent developments, the Chief Executive Officer (CEO) at Ripple, Brad Garlinghouse, joined the rest of the crypto community to slam the SEC Chairman’s regulatory policies on security and non-security crypto assets.

Lately, SEC Chair Gary Gensler is on the receiving end of criticism following his compliance standards deemed capable of limiting the growth of cryptocurrency and adoption in the United States.

Gensler’s Stance On Pro-Innovation is Laughable – Brad Garlinghouse

In a recent tweet on his official Twitter handle, Garlinghouse lambasted SEC’s chair for his unyielding stance on the regulatory platform’s roles in the United state. Brad asserted that Gensler’s stance of “pro-innovation” is the complete opposite of what he originally meant.

In addition, Garlinghouse also noted that the SEC hopes to distract the crypto community from the FTX debacle. It is worth noting that Brad previously criticized Gensler over FTX’s collapse. The Ripple CEO opined that Gensler was unperturbed when the FTX debacle transpired despite claims that the SEC is the cop on the beat for crypto.

What Are Crypto Enthusiasts Saying About SEC’s Latest Move

Crypto enthusiasts have been speculating about the possibility of a hidden agenda in SEC’s latest lawsuits, especially against Binance. German-Finnish Internet entrepreneur Kim noted that Binance could not have coincidentally become the SEC’s latest target merely after the top global exchange set FTX on fire.

In addition, Kim implicated Joe Biden, the U.S. President, in his claims, stating that Biden is ready to go extreme in the fight against Binance. It is worth noting that Sam Bankman-Fried (SBF), the FTX founder, made a donation worth $5.2 million to Biden’s presidential campaign, which went down as the second-largest donation.

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Prominent cryptocurrency YouTuber Digital Asset Investor gave his opinion on Kim’s assertion, noting that Changpeng Zhao (CZ), the founder of Binance, was instrumental in destroying the political money laundering crime perpetrated by FTX.

FTX Debacle Re-Ignited: What Are Crypto Advocates Saying?

SEC’s latest decision to drag Binance and Coinbase to the law court seemed to refresh crypto enthusiasts’ interest in the FTX debacle. Cameron Winklevoss made a tweet that read thus, “Being sued by the SEC used to mean you probably did something wrong. Now it means you’re probably doing something right.” In response to Cameron’s tweet, Binance CEO tweeted, “They didn’t sue FTX.”

In essence, most crypto advocates think that the SEC may be partial; its action does not match all it has been saying. Notably, FTX collapsed due to the mismanagement of customers’ funds by the FTX executives. Garlinghouse had revealed that $10 million worth of XRP was part of the mismanaged fund resulting in the filing of Chapter 11 bankruptcy protection by Ripple.

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