Ripple CEO Brad Garlinghouse Criticizes SEC Over Hinman Documents

Ripple CEO Brad Garlinghouse. (Photo; Doc. Cryptotechnic)

JAKARTA - Ripple boss Brad Garlinghouse criticized the US Securities and Exchange Commission (SEC) regarding Hinman's document recently disclosed. The document shows the agency's internal discussions before William Hinman's 2018 speech, former director of the SEC's Corporate Finance Division.

According to Garlinghouse, the documents indicate that senior SEC officials have inconsistent views on the law and criticize Hinman for confusing the public about the rules for cryptocurrencies.

Garlinghouse assessed that the documents showed that Hinman deliberately ignored the law by accepting payments from his law firm which had personal interests in the speech.

Garlinghouse accused the SEC of implementing a false policy with an open attitude and then suing Ripple. He explained that he and the company had interacted openly with the SEC, answered all the questions and provided the necessary information. However, according to him, the SEC is leveraging this openness to attack Ripple.

Garlinghouse stated that there is no indication that XRP, the cryptocurrency of Ripple, is a securities according to the SEC. He believes that the SEC is trying to hinder crypto innovation in the United States by taking advantage of regulatory opacity and trying to claim jurisdiction over the entire crypto industry.

Criticism of SEC actions has also been conveyed by Brian Armstrong, CEO of Coinbase, one of the largest cryptocurrency exchanges in the US. Coinbase is also facing a lawsuit from the SEC over allegations of operating as an unregistered securities broker. Armstrong has warned of possible consequences if the crypto industry is forced out of the United States and then has to face the costs of returning to the country in the future.

There is still no clarity regarding regulations governing cryptocurrencies in the US, and the controversy between Ripple, Coinbase, and the SEC has escalated the debate over the regulatory approach that should have been taken in the industry.