Ripple CEO Accuses US Regulator of ‘Hypocrisy’ on Twitter

Ripple CEO Brad Garlinghouse did not hold back on Twitter in criticizing the US Securities and Exchange Commission for its “hypocrisy” in public statements about the cryptocurrency industry.

Garlinghouse tweeted a meme from The Office where a character looks befuddled in response, while adding a pointed message to the SEC on Tuesday. 

“Ah the hypocrisy to be an unelected bureaucrat – where you can prognosticate on your bully pulpit at all times (every week a new video or speech!) and then say no one should rely on your statements as guidance…”

Ah the hypocrisy to be an unelected bureaucrat – where you can prognosticate on your bully pulpit at all times (every week a new video or speech!) and then say no one should rely on your statements as guidance… https://t.co/DGgw3s3Jdt pic.twitter.com/qoLX6VrLHP

— Brad Garlinghouse (@bgarlinghouse) May 16, 2023

Garlinghouse piled onto frustrations from Coinbase’s Chief Legal Officer Paul Grewal, who said on Monday that the SEC has said that public statements made by its Chair Gary Gensler are “not formal guidance.”

The SEC also said that the public statements by Chair Gensler are not formal guidance or policy statements from the SEC and the public cannot rely on them as such. 5/7

— paulgrewal.eth (@iampaulgrewal) May 16, 2023

Coinbase has asked the SEC to respond to its July petition asking for clearer crypto regulation guidelines.

The SEC asked a judge to reject that request on Monday, according to a court filing. 

The SEC said it was not mandated to meet the requirements outlined by Coinbase and argued that the firm has called for a complex set of reforms and rules in an unreasonably short amount of time. 

“Today’s filing may be the first time when the SEC has formally explained in court its views on whether and how the SEC should create rules for the crypto industry,” Grewal tweeted. 

They’ve got history

Ripple has been embroiled in a long-standing dispute with the SEC since 2020 when the agency accused the company as well as Garlinghouse and co-founder Christian Larsen with raising $1.3 billion through the sale of XRP.

A decision is expected from a judge still this year. 

Coinbase too is battling the SEC after the agency sent it a Wells Notice in March.

A Wells notice is a letter from SEC staff saying that the agency is ready to recommend formal charges to the five-member commission.

Coinbase has said that the agency has not complied with the law by providing companies like it a way to register. 

Meanwhile, Gensler has said that rules already exist to regulate crypto and has called the industry “largely non-compliant.”