- Former chair Clayton spoke to what some view as an un-American ethos under SEC leadership.
- Ripple CEO Brad Garlinghouse called the comments hypocritical and said they made him angry.
- The SEC has recently dropped charges against the executives; both parties are now expected to discuss potential remedies.
Over the weekend, Ripple CEO Brad Garlinghouse reacted to an interview by the former chair of the U.S. Securities and Exchange Commission (SEC), Jay Clayton, on CNBC. The CEO did not mince words about his disdain for the former chair’s remarks, stating, “Watching this clip makes my blood boil.”
Jay Clayton Brought on Legal Battle
Clayton is famously known for initiating the lawsuit against Ripple for allegedly selling XRP as a security and then leaving the SEC the next day. The short clip from a June 2023 interview has stirred considerable discussion in the crypto community.
In it, Clayton claimed, “If we’re not losing cases, we aren’t suing enough businesses.”
This statement underscores the U.S.’s focus on regulation by enforcement, which many see as an abuse of power. Clayton further stated, “When you have the power of the state you’re supposed to only bring cases that you think are going to pass judicial muster.”
Many, including Garlinghouse, saw this as hypocritical. John E. Deaton was quick to weigh in, praising Garlinghouse for his composure, which he felt he might not have if he were in Garlinghouse’s shoes.
Deaton also observed that Clayton’s approach to litigation seemed more tactical than principled, with the goal of shifting dynamics in the SEC’s favour.
Latest Development in the Lawsuit
Meanwhile, On October 24, 2023, a significant turn took place in the SEC vs. Ripple case. Judge Analisa Torres halted the ongoing legal proceedings, officially dismissing the SEC’s allegations against Garlinghouse and Ripple executive chairman Chris Larsen concerning Ripple’s institutional sales of XRP. While a trial had been initially set for April 2024, both parties mutually agreed to drop this claim last week.
The SEC and Ripple have now been granted until November 9, 2023, to come up with a schedule for potential remedies for Ripple’s Section 5 violations. If no agreement is reached by this deadline, they will formally request the Court to set a briefing schedule.
Source: CoinMarketCap
Meanwhile, XRP is on a one-month upswing, gaining over 7% as per CoinMarketCap. At the time of writing XRP trades for US $0.554 (AU $0.872).
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