Ripple CEO Brad Garlinghouse has criticized the U.S. Securities and Exchange Commission (SEC) for perceived inconsistencies in its public communication, calling out the regulator's hypocrisy in a recent tweet.
This comes after Paul Grewal, Coinbase's chief legal officer, shared an extensive Twitter thread outlining the SEC's response to Coinbase's petition for a definitive stance on cryptocurrency regulation.
Garlinghouse's tweet reflects a growing frustration among crypto industry leaders, who claim the SEC's lack of clarity is hampering the industry's growth. Grewal's thread revealed that the SEC has admitted to using enforcement actions in lieu of established rules for the foreseeable future.
The regulator also stated that public remarks by Chair Gary Gensler should not be considered as formal guidance or policy statements. "Ah the hypocrisy to be an unelected bureaucrat – where you can prognosticate on your bully pulpit at all times (every week a new video or speech!) and then say no one should rely on your statements as guidance," Garlinghouse tweeted in response.
The crypto industry has been seeking more regulatory clarity, particularly in the wake of the SEC's legal action against Ripple over alleged securities violations. As reported by U.Today, top legal minds from Ripple and Coinbase met offsite to discuss pressing issues in the crypto space. Ripple's Stuart Alderoty expressed his appreciation for Grewal's participation, and Grewal reciprocated by suggesting more frequent meetings in the future.
The SEC's response to Coinbase's petition, coupled with Garlinghouse's criticism, underscores the tension between the crypto industry and regulatory bodies. As Grewal put it in his Twitter thread, the industry lacks clarity on what the SEC may consider to be within or outside its jurisdiction at any time, a situation he believes is likely to persist.