Clayton, who gained notoriety for his stringent approach to crypto during his tenure at the SEC, has seemingly undergone a change of heart, adopting a more sympathetic and technology-driven perspective. This unexpected shift has left many, including Garlinghouse, bewildered.

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Jay Clayton’s Surprising Remarks

Garlinghouse’s astonishment stems from a recent interview with the Council on Foreign Relations, where Clayton made a series of statements that sharply contrasted with his previous regulatory actions, especially concerning the challenges faced by cryptocurrency entrepreneurs and investors.

Former SEC Chair Jay Clayton
Streamed live on Nov 21, 2023

Whether it's a security or a commodity is overblown?
Most of those decisions are pretty easy?

I'm in disbelief@s_alderoty pic.twitter.com/xrZ7h2rtpT

— Crypto Eri Carpe Diem (@sentosumosaba) November 26, 2023

During the interview, Clayton expressed empathy towards those seeking to raise capital in the crypto space, stating, “I am very sympathetic, very sympathetic with the entrepreneurs, the ones that reach out to the public to raise capital. And I am very sympathetic to the retail investors who want those opportunities.”

Furthermore, Clayton advocated for a more streamlined regulatory framework for cryptocurrencies, suggesting that the technology behind them should be the primary factor in determining their regulatory treatment.

He stated, “I think the appropriate way to regulate crypto is to recognize it is technology, not a product. It’s a different technology for almost all cases, delivering a product that we already know, sometimes in a more efficient way.”

Garlinghouse’s Disbelief and the XRP Community’s Perspective

Garlinghouse’s succinct response, “I’m in disbelief,” encapsulates the irony and frustration felt by many within the XRP community, who have long been critical of the SEC’s actions against Ripple and XRP.

The SEC’s lawsuit against Ripple, initiated by Clayton shortly before his departure from the agency, accused the company of conducting an unregistered securities offering through the sale of XRP.

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This legal action, combined with Clayton’s prior skepticism towards cryptocurrencies, has left a bitter taste in the mouths of numerous XRP community members.

While Clayton’s recent comments are seen as a welcome shift in tone, they do not erase the history of the SEC’s regulatory actions against Ripple and XRP. The ongoing lawsuit continues to cast a shadow over the XRP community and the broader crypto landscape.

Read Also: Ripple CEO States Why US Financial Institutions Have Not Started Using XRP Despite Legal Victory

The Ongoing Debate on Crypto Regulation

Jay Clayton’s evolving stance highlights the ongoing debate surrounding the regulation of cryptocurrencies. While individuals like Clayton advocate for a more technology-neutral approach, others remain cautious, harboring concerns about potential risks associated with these digital assets.

As the crypto industry continues to mature, the question of how to effectively regulate emerging technologies remains a contentious topic. The SEC, now under new leadership, faces the challenging task of striking a balance between fostering innovation and safeguarding investor interests. Their approach to this delicate balancing act will undoubtedly shape the future of crypto regulation.

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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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The post Ripple CEO To Ex-SEC Chair Jay Clayton: “Watching this clip makes my blood boil” appeared first on Times Tabloid.

In the suit filed against Clayton and Hinman, Rispoli alleged that former executives acted in favor of their previous and present employers, which can be strongly linked to Ethereum, in order to kill the hope of hundreds of XRP investors across the world.

In a series of tweets on the 13th of April, Frispoli pointed out that he decided to file the lawsuit against the duo on behalf of the teeming XRP community members because no agency has heeded the community’s calls for the investigation of the activities of former SEC chairman Clayton and the commission’s finance director Hinman.

Rispoli stated that there is enough evidence to prove that the two executives were involved in shady practices when they were leaders at the SEC.

In a series of tweets, Rispoli noted:

“We now know ONLY SOME of the seedy underbelly of what happened behind closed doors, in secret, with Mr. Clayton #HomerJayClayton and Mr. Hinman #WillyHinman regarding their conspiracy to destroy the XRPL Network.

“These two knew each and every XRPL Network User had a substantial interest in the growth and development of the XRPL Network. These two knew–while collecting taxpayer-funded, government salaries–that the XRPL Network was a massive threat to the financial interests of their former clients and previous employers. Though many have rightly called for an investigation into this conduct, no investigation is coming. No congressional subpoenas are on the horizon.

“And besides a handful of lone voices, no other crypto communities are coming to stand by as allies in support of a just cause. In truth, the XRP Army always knew this.

“It always was and likely always will be for the XRP Army to shoulder the burden alone, carrying on its back the communities who are too blind to see they are only in the second row of the firing squad.

“But this thread is all about hope. Many of you still have no idea how important and how powerful you truly are. All it takes is One. Which becomes Two. Then Four. Then, eventually, Victory.

“On April 11, 2022, a class action lawsuit was filed against Mssrs. Clayton and Hinman for tortious interference in ALL XRPL Network Users’ valid business expectancy in the XRPL Network. The Lead Plaintiff and my client, Shannon O’Leary, decided to take a stand.

“A stand against what those two did to intentionally harm hundreds of thousands of people, not just in the United States but around the world. I am serving as Shannon’s lawyer in my own personal capacity and with no affiliation but my own.

“This is a case I believe in. It is a case that is fundamentally about justice, fairness, and the rule of law.

“Mr. Clayton and Mr. Hinman through their actions described in the complaint (linked in final tweet), and operating outside of the SEC, took unreasonable and improper action to help their former (and now-current) clients target a rival, competitor blockchain network in order to destroy it. It didn’t have to be like this. The XRPL Network–like ALL blockchain networks–should have been given A LEVEL PLAYING FIELD.

“The XRP Army didn’t ask for this fight. It didn’t start this fight. But it WILL win this fight. And here is where the most important question comes into play.”

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