Ripple’s CEO, Brad Garlinghouse, has strongly criticized the comments made by former SEC Chairman Jay Clayton regarding the regulatory approach of the agency. Since the first quarter of 2023, the SEC has initiated various regulatory actions against cryptocurrency companies and exchanges.
In an interview with CNBC on June 29, 2023, Clayton expressed his opinion that the SEC should only pursue legal action against specific companies when they have a solid legal basis. He emphasized that regulatory agencies should provide regulations and legal cases that they believe will succeed under court oversight.
Garlinghouse commented: “Let’s recall, Jay Clayton sued Ripple, myself, and Chris Larsen. And he left the building the next day.”
Clayton’s statement from June 2023 has drawn attention due to recent developments in the Ripple lawsuit involving Garlinghouse and Larsen. As previously reported, the SEC dropped its charges against the CEOs in October.
The SEC’s move followed a ruling by Judge Analisa Torres that partially favored Ripple in July, stating that XRP’s retail sales did not meet the legal definition of securities. However, the court found that Ripple had violated securities laws by directly selling XRP tokens to institutional investors.