Ripple CEO Brad Garlinghouse says it is clear that SEC Chair Gensler’s “pro-innovation” stance is the opposite of what he preaches.
Top cryptocurrency stakeholders have been commenting on the US Securities and Exchange Commission’s (SEC) recent enforcement actions against crypto exchanges.
It bears mentioning that the United States Securities and Exchange Commission resumed its crackdown on crypto-focused entities with two surprising lawsuits against two of the world’s largest exchanges: Binance and Coinbase.
The SEC alleged that both exchanges facilitated the trading of several crypto assets, including ADA and SOL, which the commission considers securities. While the news of SEC’s lawsuits against Binance and Coinbase was yet to fizzle out, the commission’s chairman Gary Gensler said the United States does not need more digital currencies.
Ripple CEO Blasts Gensler’s Pro-Innovation Stance
Following the SEC’s lawsuits and Gensler’s remarks on digital currencies, top crypto stakeholders have bashed the regulatory agency’s hostile stance against the industry.
Yesterday, Ripple CEO Brad Garlinghouse joined other crypto community members to comment on the SEC’s charges. In a tweet yesterday, Garlinghouse said it should be clear by now that the SEC Chair Gary Gensler’s so-called “pro-innovation stance” is the exact opposite of what it’s supposed to mean.
If it wasn’t already clear, it should be now – Chair Gensler’s laughable “pro-innovation” stance (as he said today), is exactly the opposite. What this also tells me is that the SEC is throwing lawsuits at the wall and hoping they distract from the agency’s FTX debacle.
— Brad Garlinghouse (@bgarlinghouse) June 6, 2023
Gensler has been under heavy criticism following his adverse regulatory policies. The SEC boss is alleged to be in support of negative policies that are capable of killing American innovation and driving crypto businesses out of the US. In response to these criticisms, Gensler claims to be a pro-innovation advocate.
Furthermore, Garlinghouse asserted that the SEC hopes that its legal actions against Binance and Coinbase could create a distraction from its FTX debacle.
Recall that Garlinghouse had previously slammed Gensler over the collapse of FTX. As reported earlier, the Ripple CEO said Gensler was caught off-guard when the FTX debacle happened despite claiming that the SEC is the cop on the beat for crypto.
SEC Has a Hidden Agenda Against Binance
Meanwhile, other crypto enthusiasts believe that there is a hidden agenda behind SEC’s legal action against Binance. German-Finnish Internet entrepreneur Kim asserted that Binance became the latest SEC enforcement action recipient after the world’s largest exchange “set FTX on fire.”
He alleged that President Joe Biden is happy to go to war against Binance on behalf of his biggest donors. It bears mentioning that FTX founder Sam Bankman-Fried (SBF) made the second-largest donation worth $5.2 million to Biden’s presidential campaign.
Commenting on Kim’s assertion, prominent cryptocurrency YouTuber Digital Asset Investor noted that Binance founder Changpeng Zhao (CZ) was instrumental in shattering the political money laundering operation perpetrated by FTX.
???many forget CZ broke up the political money laundering operation that was FTX https://t.co/Tm66RtwvZH
— Digital Asset Investor (@digitalassetbuy) June 7, 2023
Notably, SBF and CZ engaged in a war of words after the FTX collapse. Following the FTX debacle, SBF tried to blame CZ and Binance. However, CZ would not have any of it, as he urged the embattled crypto exec to focus on himself and stop the blame game.
Crypto Stakeholders Reopen Talks on FTX Debacle
Interestingly, in the wake of the SEC’s legal actions against Binance and Coinbase, several cryptocurrency proponents have brought the FTX debacle into the limelight.
Yesterday, Binance CEO and founder Changpeng “CZ” Zhao, who was also joined in the lawsuit, called attention to the fact that the securities agency failed to sue FTX before its collapse.
They didn't sue FTX. https://t.co/FVgi5l6VcI
— CZ ? Binance (@cz_binance) June 6, 2023
CZ commented in response to a tweet by Gemini co-founder Cameron Winklevoss. Winklevoss noted that being sued by the SEC before now used to imply that the defendant did something wrong. However, things have changed, as an SEC lawsuit suggests that the entity is doing something right.
Recall that FTX suffered a devastating collapse due to the exchange’s execs’ alleged misappropriation of customers’ funds. Ripple was also a victim of the FTX collapse. As reported earlier, Garlinghouse disclosed that the company had an exposure of $10M worth of XRP in FTX. The exchange had since filed for Chapter 11 bankruptcy protection.
Meanwhile, many believe the FTX saga could have been avoided if the SEC had launched an investigation into FTX’s operations early. Last year, Minnesota Rep. Thomas Earl Emmer blamed both Gensler and SBF for the collapse of FTX. Interestingly, top cryptocurrency enthusiasts took direct swipes at SBF following its collapse.
In a tweet last year, Tesla founder Elon Musk said FTX would still be solvent if only SBF were good at running the exchange in the way he bribed the media.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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