Bitrabo Editorial
Brad Garlinghouse, the CEO of Ripple, publicly criticized the US Securities and Exchange Commission (SEC) for backing out of the legal battle with Binance, the world’s largest cryptocurrency exchange, calling the SEC’s actions inconsistent and unclear.
US SEC’s Flip-Flop Draws Criticism
The SEC recently withdrew its request to classify tokens like Solana (SOL), Cardano (ADA), and Polygon (MATIC) as securities in the Binance lawsuit, a move that has been viewed as erratic and lacking transparency by the crypto community.
The SEC informed the defendants of its plan to amend the complaint, specifically regarding Third Party Crypto Asset Securities, eliminating the need for an immediate ruling on the tokens’ security status.
As a result of discussions between Binance and the SEC, the court will no longer treat the tokens as securities, leading to dissatisfaction expressed by Ripple CEO Brad Garlinghouse, who accused the SEC of hypocrisy and called for consistent regulation.
Calls for Gensler’s Resignation
Legal expert John E. Deaton supported Garlinghouse’s criticism, questioning the clarity and consistency of the SEC’s rules under Chairman Gary Gensler. Deaton pointed out that the SEC’s retreat from the Binance case underscores the need for Gensler to step down, citing significant investor losses and alleged falsehoods under oath.