Brad Garlinghouse, the CEO of Ripple, has strongly criticized the former SEC Chairman, Jay Clayton, for his recent comments regarding the U.S. Securities and Exchange Commission’s (SEC) approach to litigation.
In a June interview with CNBC, Clayton suggested that the financial regulator should only pursue cases that would pass judicial scrutiny.
Garlinghouse Slams Clayton’s ‘Hypocrisy’
Clayton said:
“When you have the power of the state, you’re supposed to only bring cases and only make rules that you think are going to pass judicial muster.”
This statement drew the ire of Garlinghouse, who said the video made his “blood boil” and criticized Clayton’s hypocrisy.
Garlinghouse pointed out that the former SEC Chair initiated the SEC’s ongoing lawsuit against Ripple in 2020.
The SEC’s legal action alleged that the XRP token was security and that Ripple’s top executives, including Garlinghouse and Larsen, raised more than $1.3 billion through its sales.
He said:
“As a reminder, Jay Clayton brought the case against Ripple, me, and Chris Larsen. And left the building the next day.”
“The hypocrisy is shocking. CNBC, SquawkCNBC should be calling him out for the bullshit,” Garlinghouse added.
Pro-XRP lawyer John Deaton joined in slamming Clayton’s hypocrisy. According to Deaton, the former SEC chair was “clearly the one who pushed to” join Ripple’s top executives in the case.
“[Clayton] likes to sue the executives because it ‘changes the dynamics’ of the lawsuit (i.e., it’s a bullying/intimidation tactic),” He added.
He concluded that Clayton’s hypocrisy became more glaring when the SEC had nothing to prove its securities allegations against XRP.
“When you consider the hypocrisy of Clayton’s remarks, remember he filed a lawsuit claiming ALL XRP from the beginning of time until the end of the world was, is, and always will be securities, even though the SEC couldn’t cite a single case in history to support this absurd claim, Deaton added“
XRP Price Marches On
As the SEC’s legal dispute with Ripple unfolds, the regulatory body has faced consecutive setbacks, including a landmark ruling in July declaring that sales of Ripple’s XRP to the general public were not a security.
These defeats led to the dropping of charges against Ripple’s CEO, Brad Garlinghouse, and co-founder Chris Larsen.
Ripple’s XRP recently touched $0.57, its highest value since August, during the recent spot Bitcoin exchange-traded fund (ETF)-driven bull run. The digital asset has since retraced to $0.54 as of press time, according to BeInCrypto data.
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