Former SEC Chairman Jay Clayton’s unexpected endorsement of the cryptocurrency broke away from his past rigidity and caught the attention of Ripple CEO Brad Garlinghouse.
In a social media post, Garlinghouse questioned Clayton’s veracity in light of his 2020 lawsuit against Ripple. This legal battle, which began during Clayton’s tenure at the SEC, stands in stark contrast to his current pro-cryptocurrency stance.
Ripple CEO calls out perceived hypocrisy in Clayton’s recent comments.
Garlinghouse highlights the discrepancy between Clayton’s current push for lenient cryptocurrency regulation and his previous stringent measures against Ripple.
Clayton expressed his support for cryptocurrencies at a Council on Foreign Relations event, focusing on the technical aspects of cryptocurrencies rather than advocating for stronger regulation.
His sympathy for cryptocurrency entrepreneurs represents a notable shift in tone.
Clayton suggests a nuanced approach, advocating for a regulatory environment that supports small businesses raising capital.
He simplified the classification process by emphasizing viewing cryptocurrencies as technologies rather than separate financial products.
Ripple’s victory in the SEC lawsuit set a precedent for the treatment of digital assets under U.S. securities laws, with U.S. District Judge Analisa Torres ruling that the secondary sale of XRP was not an investment contract.
Garlinghouse, confident of Ripple’s legal status, has expressed readiness to take the case to the Supreme Court if necessary.
This legal victory will not only benefit Ripple but also shape the evolution of the regulatory environment for cryptocurrencies in the United States.