Ripple CEO Brad Garlinghouse said the newly released Hinman documents show that the SEC knew it might not have the jurisdiction to fill the “regulatory gap” over crypto.
In a June 16 video, the Ripple executive stated that the Hinman documents show the lack of internal agreement within the SEC over how to regulate crypto.
Hinman Documents Created New Factors to Regulate Crypto
According to Garlinghouse, Hinman’s 2018 speech created new factors to show that sufficiently decentralized crypto assets could no longer be considered a security.
However, details of the documents show that top officials within the financial regulator could not agree on regulating crypto. These executives had informed Hinman that his speech would further confuse people.
In Garlinghouse’s opinion, Hinman deliberately ignored the laws and tried to create new rules. He added that the former SEC official attempted to usurp the powers of Congress with this speech.
Garlinghouse stated that the speech was not about any token or blockchain. Instead, it shows the extent to which SEC has pursued enforcement actions against crypto players while telling the public that crypto firms can come in and register.
Ripple Transparency vs. SEC Bad Faith
The Ripple executive highlighted prior engagements with former SEC chair Jay Clayton and Bill Hinman. During these meetings, the regulator never suggested that XRP was a security. According to him, this is another incident that shows the bad faith actions of the SEC.
“They have preached (and demanded) transparency from those they regulate, but fight tooth and nail when held to the same standards.”
He added the current chair of the Commission, Gary Gensler, is now “weaponizing the lack of regulatory clarity to exert jurisdiction over the entire crypto space.” Garlinghouse said:
“Gensler point blank refuses to comment on specific projects (besides BTC) but indirectly and incorrectly labels tokens as securities in lawsuits, and in the next breath, says how “clear the rules are” while his agency tries to front-run Congress.”
Read More: Top 11 Crypto Communities To Join in 2023
XRP is up 4% in 24 Hours
After the Hinman documents were released on June 13, XRP jumped to a 10-week high of $0.5668. However, the asset has retraced to $0.48055 after rising by 4% in the last 24 hours, according to BeInCrypto data.
XRP is up 8.4% over the past month but is down 2.7% in the last seven days. The judge is expected to rule on the summary judgment applications of the case during the next few weeks.
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