Ripple CEO Brad Garlinghouse expressed his dissatisfaction with former Securities and Exchange Commission (SEC) Chairman Jay Clayton’s recent statements on cryptocurrencies. Clayton drew attention to the challenges faced by entrepreneurs and investors in the crypto space and made conflicting comments regarding his previous regulatory stance.
In the context of the lawsuit filed against Ripple in December 2020, Clayton’s remarks are seen as a significant deviation from his actions during his tenure as SEC Chairman. His views on the regulation of cryptocurrencies further fueled controversy.
Clayton argued that the technology behind cryptocurrencies should guide regulatory treatment and that cryptocurrencies should be recognized as a technology. He also highlighted the ongoing debate about whether cryptocurrencies should be treated as securities or commodities.
Clayton’s perspective contradicts his aggressive stance during his tenure as SEC Chairman, particularly when he accused Ripple of selling XRP in unregistered securities transactions. Garlinghouse criticized Clayton’s comments, reflecting the general atmosphere of distrust in the XRP community and summarizing the irony and disappointment felt by many who closely follow the SEC’s actions in the crypto space, especially regarding Ripple and XRP.
The lawsuit Clayton initiated against Ripple shortly before his departure from the SEC had a significant impact, causing a major sell-off of XRP. The timing of this move and the perceived conflict of interest were criticized, raising questions about the ethics behind such regulatory decisions.
In particular, the XRP community accused Clayton of hypocrisy for suing Ripple and later advocating for more understandable and technology-focused regulations.