In a recent tweet, Ripple CEO Brad Garlinghouse called the recent US Securities and Exchange Commission (SEC) charges against both Binance and Coinbase a distraction. Specifically, Garlinghouse stated that “the SEC is throwing lawsuits at the wall and hoping they distract from the agency’s FTX debacle.”
So far this week, Binance and Coinbase have seen multiple charges issued by the US regulator. Specifically, the SEC has alleged that both exchanges have participated in the sale of unregistered securities. Now, a man very familiar with SEC legal action has given his take on the development.
It’s embarrassing to watch an unelected bureaucrat flail like this to mask the fact that he and his agency don’t have the power that he so desperately craves. No one is fooled.
— Brad Garlinghouse (@bgarlinghouse) June 6, 2023
Ripple CEO Talks Recent SEC Charges
The entire digital asset industry was shocked at the recent regulatory action taking place. Indeed, two of the largest cryptocurrency exchanges on the market have seen themselves as targets of charges issued by the US regulator. A development that has certainly concerned many.
Now, Ripple CEO Brad Garlinghouse has stated his belief that the SEC charges against Binance and Coinbase are merely a distraction. Specifically, Garlinghouse said that the regulator hopes the charges will distract from its failure regarding the collapse of FTX last year.
“If it wasn’t already clear, it should be now—Chair Gensler’s laughable ‘pro-innovation’ stance (as he said today) is exactly the opposite.” Additionally, Garlinghouse gave his opinion on the developments. “What this also tells me is that the SEC is throwing lawsuits at the wall and hoping they distract from the agency’s FTX debacle.”
Garlinghouse and Ripple have been embroiled in litigation with the SEC for over two years. Moreover, they have engaged in a fight over the sale of unregistered securities. The same lawsuit is facing both exchanges. Conversely, it is important to note that Binance is facing additional charges. Specifically related to the potential commingling of customer funds.
The failure of FTX and what it cost consumers is certainly a stain on any action the SEC takes. Specifically, the regulator had not acted against clear illegal actions taken by the exchange. Subsequently, some can view the agency’s pro-enforcement approach as an attempt to make up for that. However, it has clearly continued to divide the industry and regulators from continuing to facilitate safe innovation.