Garlinghouse has slammed the SEC chairman’s method of regulating the crypto industry.

Brad Garlinghouse, Ripple’s CEO, has commented on an opinion piece written by the Wall Street Journal (WSJ), which slammed SEC Chairman Gary Gensler’s cryptocurrency approach as counter-productive. 

Ripple’s CEO shared an excerpt of the article: “Mr. Gensler’s blockade is counter-productive if he aims to protect investors.” 

According to Garlinghouse, the WSJ article is enough to prompt congressional action that would stop Mr. Gensler from continuing his “regulation by enforcement” approach in the nascent industry. 

However, Garlinghouse noted that if the U.S. Congress is not triggered by the WSJ opinion piece and moves to stop Mr. Gensler, then he is not sure what would motivate them to swing into action. 

“If that doesn’t call for Congressional action to stop Chair Gensler’s preferred method of regulation by enforcement, I’m not sure what does,” Garlinghouse tweeted. 

.@WSJopinion writes “Mr. Gensler’s blockade is counter-productive if his aim is to protect investors.”

If that doesn’t call for Congressional action to stop Chair Gensler’s preferred method of regulation by enforcement, I’m not sure what does…https://t.co/4mhxBEauN6

— Brad Garlinghouse (@bgarlinghouse) July 7, 2022

SEC Ignores Continuous Calls for Clear Crypto Regulations

The Ripple CEO’s comment echoes continuous outbursts from the crypto community about the methods the SEC uses to regulate the cryptocurrency industry. 

For years, the SEC has been urged to provide more transparent crypto regulations to guide the activities of the nascent industry. The SEC has maintained that its regulations on digital assets are clear, without giving any further guidelines. 

However, when crypto-related firms try to figure out these rules and offer products based on their interpretations of the SEC’s rules, the agency swings into action and charge them for violating its policies. 

Ripple-SEC Lawsuit 

An example is the ongoing legal battle between Ripple and the SEC. Recall that in late 2020, the SEC charged Ripple and two of its executives, including Garlinghouse, for conducting an unregistered securities offering that saw it raise $1.3 billion in a 2013 Initial Coin Offering (ICO). 

Ripple noted that it hired the services of professionals to help ensure that its crypto sales do not violate U.S. securities laws. 

However, the SEC chose to slam a lawsuit against Ripple seven years later, despite efforts made by the company to ensure it does not get into the bad books of the agency. 

The lawsuit has lingered for more than a year. The case is expected to be concluded on or before March 31, 2023. 

Court Grants SEC’s Request to File a 120-Page Omnibus Motion.

In other developments, District Judge Analisa Torres has granted the SEC’s request to file a 120-page omnibus motion to limit or exclude the testimonies of 10 Ripple’s experts.

District Judge Torres has granted the SEC’s Motion for Permission to file a 120 page omnibus (big) Motion to Exclude or Limit the Expert Testimony of ten Ripple, Garlinghouse or Larsen experts. pic.twitter.com/uTAGP9kLWa

— James K. Filan ????104k+ (beware of imposters) (@FilanLaw) July 7, 2022

Recall that the SEC requested that it file a 120-page omnibus motion to exclude or limit the testimonies of 10 Ripple experts. The SEC opted to file an omnibus motion instead of utilizing the 15-page limit per expert as previously ordered by the court.

The 10 experts the SEC plans to limit or exclude their testimonies have made various reports regarding the lawsuit.

Meanwhile, the blockchain company and Individual Defendants, Brad Garlinghouse and Chris Larsen did not object to the SEC’s request.

However, Ripple and its two executives demanded that they should also be allowed the same page limit when filing an opposition to the SEC’s motion.

Following these reasons, Judge Torres granted the SEC’s request to file a 120-page motion to limit or exclude 10 of Ripple’s experts’ reports.

Ripple has been granted permission to add two new attorneys to its legal team. 

Ripple’s motion to add two attorneys to its legal team in the ongoing lawsuit against the Securities and Exchange Commission has finally been granted. Attorney John K. Filan disclosed the development in a statement yesterday.

Shortly after two attorneys from Kellogg Hansen – Kylie Kim and Clayton Masterman –  were denied admission into Ripple’s legal team, the blockchain company moved immediately to file an amended motion for admission to Pro Hac Vice.

Defendants also notarized affidavits of the attorneys in compliance with local rules.

“Amended Motions for Admission Pro Hac Vice have been filed. Affidavits notarized,” attorney Filan noted in a recent statement.

Amended Motions for Admission Pro Hac Vice have been filed. Affidavits notarized.

— James K. Filan ????104k+ (beware of imposters) (@FilanLaw) July 6, 2022

The moves made by Ripple prompted the court to grant the motions that would see both attorneys added to the blockchain company’s legal team in the ongoing lawsuit.

“Both Motions to Appear Pro Hac Vice have been granted,” attorney Filan tweeted yesterday.

Both Motions to Appear Pro Hac Vice have been granted.

— James K. Filan ????104k+ (beware of imposters) (@FilanLaw) July 7, 2022

Pro Hac Vice Rule

Pro Hac Vice is a legal term used to add attorneys to a case within jurisdictions where the lawyer was not originally admitted to practice. However, attorneys for Pro Hac Vice are added in such a way that he or she will not commit unauthorized practice of law in the new jurisdiction.

Lawyers who practice Pro Hac Vice usually do so via the council of local attorneys.

The Move Could Prolong the Lawsuit

Although the development is considered strategic to increase Ripple’s chances of winning the lawsuit, the onboarding of the two lawyers to the company’s legal team may prolong the proceeding of the case beyond expectations.

Following an analysis provided by attorney Filan in May as reported by TheCryptoBasic, the lawsuit is expected to end on or before March 31, 2023.