Ripple CEO Accuses Former SEC Head of Hypocrisy
Former US Securities and Exchange Commission (SEC) Chairman Jay Clayton’s statement on the agency’s approach to regulating the industry was criticized by Ripple CEO Brad Garlinghouse.
Garlinghouse’s comments were made in response to Gemini co-founder Cameron Winklevoss’ post on June 28.
In the post, Clayton stated that the SEC should only file lawsuits against specific companies if there are compelling reasons to do so.
Garlinghouse expressed shock and hypocrisy at this statement, reminding that the SEC had filed a lawsuit against him, his fintech company, and co-founder Chris Larsen during Clayton’s tenure.
The commission accused Ripple of selling unregistered securities worth $1.39 billion in the form of XRP over a period of seven years.
The lawsuit stated that top managers were major holders of the security and collectively sold $600 million in tokens.
On June 13, 2023, Ripple scored a partial victory in the case, with Judge Analisa Torres ruling that program sales and token distributions do not constitute the implementation of investment contracts.
