Ripple CEO Brad Garlinghouse opposes Bob Stebbins’ US SEC Chair bid, citing anti-crypto regulations.
Brad Garlinghouse, the CEO of Ripple, has expressed apprehension regarding Bob Stebbins, a prominent candidate for the position of U.S. SEC Chair.
Bob Stebbins, a former SEC General Counsel, has been the subject of criticism from cryptocurrency leaders due to his involvement in previous regulatory decisions that many perceive as unfavorable to the industry.
Brad Garlinghouse, CEO of Ripple, Discusses Stebbins’ Candidacy
Brad Garlinghouse, the CEO of Ripple, has publicly expressed his disapproval of Stebbins on social media, contending that it would be “unconscionable” to appoint an individual associated with controversial SEC practices. He cited Stebbins’ purported involvement in the 2018 Ethereum speech, which classified Ethereum as a non-security while disregarding the concerns of other crypto companies.
Brad Garlinghouse underscored the necessity of regulatory fairness, citing the SEC’s history of “picking winners and losers” in the cryptocurrency sector.
This criticism is being issued as the crypto industry closely monitors the prospective departure of Gary Gensler and the appointment of the following US SEC Chair, who is expected to adopt a more impartial stance. A leader who prioritizes clarity and impartiality in regulations rather than continuing enforcement-focused measures has been repeatedly advocated for by numerous advocates, including Brad Garlinghouse.
Ripple’s legal officer expressed a similar perspective
Stuart Alderoty, Ripple’s Chief Legal Officer, also expressed his apprehensions regarding Stebbins’ candidacy. In a recent statement, Alderoty proposed that Stebbins’ involvement in previous SEC decisions could impede efforts to increase regulatory transparency.
He referenced Stebbins’ association with former SEC Chair Jay Clayton, who filed the lawsuit against Ripple in December 2020. The outgoing US SEC chair, Gary Gensler, has also been criticized by the Ripple CLO for his attempts to rationalize the lawsuits under Jay Clayton.
Simultaneously, John Deaton, a lawyer for Pro XRP, exacerbated the apprehensions by referring to Stebbins as “Clayton 2.0” and cautioning against the potential continuation of the SEC’s aggressive posture toward digital assets. Critics contend that the appointment of Stebbins could impede innovation and encourage U.S. crypto firms to relocate abroad. Additionally, Deaton had previously identified Brand Bondi as his preferred candidate for the position of US SEC chief.
Bob Stebbins’ Track Record on Crypto Regulation
Due to Bob Stebbins’ tenure at the SEC, the cryptocurrency sector has been the subject of extensive debate. He has reportedly authorized approximately 80 cryptocurrency enforcement actions during his tenure, a significant number directed at U.S.-based companies. Advocates for the crypto industry have long criticized such actions as inconsistent and excessively punitive.
Stebbins has also been associated with regulatory decisions that have favored specific crypto assets while subjecting others to litigation. The current challenges in regulatory clarity have exacerbated fears among industry leaders like Brad Garlinghouse that his leadership could perpetuate them due to this perceived inconsistency. Additionally, the Ripple lawsuit, which he had signed off on, exacerbated his apprehension regarding his posture on crypto regulation.
Nevertheless, the Biden administration is reportedly considering other candidates even though Bob Stebbins is considered a viable contender. Potential candidates include Richard Farley, Paul Atkins, Dan Gallagher, and Mark Uyeda, the current US SEC Commissioner.
Brad Garlinghouse, the CEO of Ripple, has expressed his optimism that the incoming SEC Chair will prioritize innovation while guaranteeing equitable treatment for organizations such as Coinbase, Circle, and Ripple.
