A video from June has drawn the ire of Ripple CEO Brad Garlinghouse on X. In June, Cameron Winklevoss (@cameron), the co-founder of Gemini crypto exchange and Winklevoss Capital, shared a clip of the former SEC Chair Jay Clayton on CNBC’s Squawk Box. In the video, Clayton condemned the regulatory strategy being employed by the SEC under Gensler.
The SEC’s Regulatory Strategy
According to Clayton, the current regulators believe that “If we’re not losing cases, if we’re not being pushed back by the courts, we’re not doing enough.” Clayton points out the flaw in this strategy and describes it as a “fundamental shift” in how Americans view their government’s role.
Clayton said he wouldn’t want to be in a place where the government could bring lawsuits they knew they would lose, and then he asked the interviewer to put themselves in the shoes of the person being sued.
Clayton stated that regulators with the power of the state should only bring cases and make rules that would pass judicial scrutiny.
Garlinghouse Claps Back
Garlinghouse was unhappy with Clayton’s statement, saying, “Watching this clip makes my blood boil.” Although Clayton’s statement about regulators only taking on credible cases is right, he isn’t innocent, and Garlinghouse points out his hypocrisy. He adds, “The hypocrisy is shocking. @CNBC @SquawkCNBC should be calling him out for the bullshit.”
Watching this clip makes my blood boil.
The hypocrisy is shocking. @CNBC @SquawkCNBC should be calling him out for the bullshit.
(As a reminder, jay clayton brought the case against ripple, me and Chris Larsen. And left the building the next day).
— Brad Garlinghouse (@bgarlinghouse) October 28, 2023
Clayton was the SEC chair who filed the lawsuit against Ripple in December 2020, which is still going on and has harmed the adoption of XRP in the U.S. He was also the instigator of the case against Brad Garlinghouse and Chris Larsen, charging them with aiding and abetting the sales of unregistered securities, charges that the SEC recently dropped.
Garlinghouse stated, “As a reminder, Jay Clayton brought the case against Ripple, me and Chris Larsen. And left the building the next day.”
The Community Stands Behind Garlinghouse
As expected, the crypto community called out Clayton and the SEC for their hypocrisy. This isn’t the first time the SEC has been called out for hypocrisy, and if Gensler continues with this strategy, it might not be the last.
One user highlighted the bright side of the situation, stating that Ripple survived the SEC’s corruption, and it was a win for the crypto community. However, it is still sad because of all the legal expenses Ripple has incurred.
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