Ripple CEO Brad Garlinghouse recently criticized the U.S. Securities and Exchange Commission (SEC) for its inconsistent handling of cryptocurrency regulation.
In a recent post on X, Garlinghouse noted that the SEC’s actions contribute to industry confusion, calling into question the commission’s commitment to faithfully applying the law.
In response to CoinTeleGraph’s post, Brad Garlinghouse wrote, “More evidence of SEC hypocrisy. Chair Gensler testifies the rules are clear, yet his SEC can’t figure them out and applies them haphazardly, festering more industry confusion. A political agenda and/or bad faith litigation tactics. Def not a “faithful allegiance to the law”.
This criticism came in response to the SEC’s decision to retract its request for a court ruling that would classify certain cryptocurrencies as securities in its ongoing lawsuit against Binance.
SEC’s Shift on Crypto Security Status
Initially, the SEC had identified several tokens, including Solana, Cardano, and Polygon, as securities in its lawsuit against Binance. This classification could have had significant implications for the broader cryptocurrency market.
However, in a recent filing, the SEC indicated its intent to amend its complaint regarding these tokens, following a minute order from the court on July 9. This was the move that drew the ire of Garlinghouse and sparked further debate on the SEC’s approach to regulating digital assets.
The SEC’s lawsuit against Binance, filed in June 2023, had initially claimed that at least 68 tokens were securities, impacting over $100 billion worth of cryptocurrencies. The crypto industry rejected this claim, and experts argued that the SEC’s broad interpretation of securities laws was stifling innovation and growth in the digital asset sector.
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The Shifting Political Landscape
The decision to retract the request for classification follows increased political interest in cryptocurrency regulation.
On July 27, former President Donald Trump spoke at the Bitcoin 2024 conference in Nashville, Tennessee, promising to dismiss SEC Chair Gary Gensler on his first day in office, should he be elected, and to establish a crypto and Bitcoin advisory council to support the industry’s growth.
Trump wants to end the war on crypto in the U.S. and he pledged to make the country the crypto capital of the world.
Members of the Democratic Party have also begun to adopt a new approach to cryptocurrencies. On July 27, Democratic U.S. House of Representatives members signed a letter urging the party to reconsider its stance on cryptocurrency regulation.
In response, advisers to presidential candidate and Vice President Kamala Harris have contacted crypto companies to mend the party’s relationship with the industry.
The vote of crypto holders holds significant weight in the upcoming U.S. election, and this is a perfect opportunity to dictate the future of the crypto market. Prominent voices in the crypto community like Ripple CLO Stuart Alderoty have shown support for Donald Trump through a massive donation. Over the next few weeks, we will see if Harris can gain the support of crypto investors.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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