Ripple $2.5 CEO Brad Garlinghouse supported Tesla CEO Elon Musk’s criticism of the US Securities and Exchange Commission (SEC). This support had wide repercussions in the market after SEC Chairman Gary Gensler’s latest move towards Musk.
Garlinghouse Continues Criticism of SEC
Elon Musk stated that he uses the SEC as a “political tool” and “for dirty work.” These statements came along with a notice the SEC Chairman sent to Neuralink, sparking backlash among political figures and crypto advocates.
Brad Garlinghouse reshared Musk’s comment, showing their shared disappointment with the agency. Ripple’s ongoing legal battle with the SEC, along with the lawsuit to declassify the XRP cryptocurrency, has added fuel to the crypto regulation debate.
Regulation Expectations Increased
As expectations grow over cryptocurrency regulations in the United States, experts and politicians have addressed various aspects of the issue.
“The SEC exceeded its authority by enforcing Nasdaq’s corporate governance policies,” said Cory Liu, an associate at the University of Texas School of Law.
Presidential candidate Vivek Ramaswamy has criticized the SEC, saying constant legal losses are damaging the agency’s credibility.
“The SEC cannot be trusted as an independent agency,” said U.S. Senator Mike Lee.
Market and Future Outlook
For Ripple, ongoing litigation with the SEC could shape the future of crypto regulation in the US. Garlinghouse’s move in concert with Musk has accelerated calls for biased crypto regulations.
These developments lead to closer scrutiny of the SEC’s practices, while Gary Gensler’s departure from his position in January creates additional debate over regulatory approaches. Ripple and other crypto companies are focusing on the future of regulations in this process.
Ripple CEO Brad Garlinghouse’s support for Elon Musk’s criticism of the US SEC signals a re-evaluation of regulatory approaches in crypto markets. While this support increased the expectation that the SEC would adopt a more flexible approach to crypto regulations, it created an important indicator for market actors.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
