Former SEC Chair Jay Clayton’s unexpected endorsement of cryptocurrency, shifting from past rigidity, has caught the attention of Ripple CEO Brad Garlinghouse.
Garlinghouse, in a social media post, questions Clayton’s sincerity in light of the 2020 lawsuit against Ripple. This legal battle, initiated during Clayton’s SEC tenure, stands in stark contrast to his current pro-crypto stance.
The Ripple CEO points out the perceived hypocrisy in Clayton’s recent remarks.
Garlinghouse highlights the inconsistency between Clayton’s current push for lenient crypto regulation and his earlier stringent actions against Ripple.
At a Council on Foreign Relations event, Clayton expresses support for cryptocurrency, focusing on its technological aspects rather than advocating for heavy regulation.
His sympathy towards crypto entrepreneurs marks a notable shift in tone.
Clayton suggests a nuanced approach, advocating for a regulatory environment that aids capital raising for smaller companies.
He emphasises viewing cryptocurrencies as technology rather than distinct financial products, simplifying the classification process.
Ripple’s triumph in the SEC lawsuit, with U.S. District Judge Analisa Torres ruling that XRP’s secondary sales aren’t investment contracts, sets a precedent for digital asset treatment under U.S. securities law.
Garlinghouse, confident in Ripple’s legal standing, expresses readiness to take the fight to the Supreme Court if necessary.
This legal victory not only benefits Ripple but also shapes the evolving regulatory landscape for U.S. cryptocurrencies.