Ripple boss Brad Garlinghouse has taken to Twitter to share a rare video. This time, he was driven to record it after reading Dr. Hinman's emails released by the SEC after the pressure the court put on this regulatory agency.
Garlinghouse revealed several astonishing facts about Dr. Hinman, the SEC and the crypto regulation that the agency seems to be unwilling or incapable of deploying in the U.S.
Garlinghouse admitted that he does not make a video every week, but this week has been a tough one, so he decided to address the crypto community.
Shots fired! This is remarkable; Ripple trying the case in the court of public opinion! Pure political pressure. Without direct accusation, Brad points out Hinman "Received millions of dollars of law firm part of an alliance with others that had a vested interest in the speech. https://t.co/oz5FlYMe3d— WrathofKahneman 🪝 (@WKahneman) June 16, 2023
Ripple CEO reveals curious facts about SEC and Hinman
He mentioned that the documents about Hinman's speech, internal SEC emails and other documents related to it were finally released by the SEC after two years, seven court orders and more than $100 million of legal bills.
Garlinghouse revealed that, according to the above-mentioned documents, the SEC could not agree inside of the agency on the crypto law that should be used for regulating crypto (as to when a token stops being security) and they told Hinman directly that his speech would confuse the public even more.
He also pointed out that, according to the documents, while he worked for the SEC, "Hinman received millions of dollars of payments from his law firm, which was part of an alliance with others that had invested interest in this speech."
Ripple CEO meets with Clayton and Hinman in person
Garlinghouse also drew attention to the fact that it is clear from the documents that the SEC to a high degree has relentlessly pursued enforcement actions against crypto players, "while professing fake open arms and calls to come in and register" as it was lying about their so-called guidance all the way through.
This happened despite, per Garlinghouse, Ripple spending years proactively engaging with the SEC on the subject of crypto regulatory compliance. Garlinghouse personally met with Jay Clayton (the SEC back then, who then initiated the lawsuit against Ripple in 2020 one day before he retired) and William Hinman without any lawyers present to discuss those matters.
Ripple CEO and other top executives answered all the questions from the SEC reps, and there was not a single time when Clayton or Hinman suggested to Garlinghouse, per his words, that XRP was a security. Later on, Garlinghouse said, they used the information he revealed to them in private against Ripple in court.
Even after Ripple received a surprise Wells Notice, saying that the SEC was considering suing them for violating the securities laws, the regulator still refused to provide any substance to those allegations, Garlinghouse added.
And now, the SEC, he said, is sending those notices to multiple crypto companies in the U.S. and suing them — Coinbase, Binance among the most recent ones. The SEC wants to kill crypto innovation in the U.S., Ripple CEO concluded.