Ripple CEO Brad Garlinghouse harshly criticized former Securities and Exchange Commission (SEC) Chairman Jay Clayton’s statements on the agency’s corporate regulatory position. The Commission has been enforcing many anti-crypto actions against crypto exchanges and organizations since the first quarter of 2023.
Views of Jay Clayton Regarding US SEC Lawsuits
Clayton’s June 2023 remarks became more notable in light of the latest developments in the legal dispute between Garlinghouse and Ripple inventor Chris Larsen. The US SEC’s allegations against the two top executives were withdrawn, according to a report by Coinbrit earlier. It’s interesting to note that the accusations were brought on December 22, 2023, right before he stepped down as SEC Chair. It was a long time ahead of June 2021, the real expiration date.
In an interview with CNBC on June 29, 2023, Clayton stated that if the US SEC had a valid legal justification, it would prefer to bring lawsuits against specific businesses. He clarified that only regulations and cases that the regulatory bodies are certain they can win should be brought up.
Brad Garlinghouse: “It’s Startling to See Hypocrisy”
The former SEC Chair was accountable for bringing a lawsuit that had no prospect of success in court, the Ripple CEO recalled in the context of the SEC’s vote to dismiss the claims without prejudice. The Commission had sued Gralinghouse and Larsen in the December 2020 XRP case, claiming that they had raised more than $1.3 billion by means of a “unregistered, ongoing digital asset securities offering.” Says Garlinghouse,
Recall that Chris Larsen, Ripple, and I were all targets of a lawsuit filed by Jay Clayton. and the following day departed the building.
The latest respite for the two executives follows Judge Analisa Torres’ July 2023 decision that the sale of XRP to retail customers on secondary markets does not constitute an investment contract.