Ripple CEO Brad Garlinghouse supported Elon Musk’s criticism of the SEC, highlighting shared frustrations over regulatory actions. This solidarity comes amid Ripple’s ongoing legal battle with the SEC over XRP’s classification as a security.
Ripple CEO Brad Garlinghouse recently expressed his support for Elon Musk in a recent X post, while the Tesla CEO criticized the US Securities and Exchange Commission(SEC).
This has prompted extensive market discussions, particularly in light of the recent criticism of Elon Musk by SEC Chair Gary Gensler.
On the other hand, the protracted legal dispute between Ripple and the agency has also sparked market discussions amid the anticipated pro-crypto regulatory environment in the United States.
Ripple CEO Brad Garlinghouse Supports Elon Musk
Elon Musk‘s criticism of the US Securities and Exchange Commission (SEC) garnered significant attention when he referred to the agency as a “political tool” that was employed for “dirty work.”
Following the news of Gary Gensler, the US SEC Chair, sending a notice to his company Neuralink, his remarks elicited reactions from both political figures and crypto advocates.
Brad Garlinghouse, the CEO of Ripple, expressed his support for Musk by reposting his comment, indicating their shared frustration with the agency. Ripple has been embroiled in a legal dispute with the agency for an extended period of time.
The XRP litigation, which challenges the security status of its native crypto, has become a focal point in the ongoing discussion regarding crypto regulation.
In the interim, politicians and legal professionals have actively participated in the discourse. A recent court judgment against the Securities and Exchange Commission (SEC) was emphasized by Cory Liu, an adjunct professor at the University of Texas School of Law.
The SEC was found to have exceeded its authority by enforcing a Nasdaq policy that mandated diversity quotas for corporate boards, according to the court. Liu contended that the SEC should prioritize the establishment of equitable markets rather than the enforcement of identity-based quotas.
Presidential candidate Vivek Ramaswamy criticized the SEC, suggesting repeated legal losses undermine its credibility. U.S. Senator Mike Lee echoed this sentiment, stating that the US SEC “cannot be trusted” as an independent body.
Crypto Market Eyes Pro-Crypto Regulation
The US SEC and its Chair, Gary Gensler, have been previously criticized by Ripple CEO Brad Garlinghouse for their opposition to the crypto market.
Market devotees have demonstrated considerable interest in the most recent developments. In contrast, the D.O.G.E., which is led by Elon Musk and Vivek Ramaswamy, has also stirred market discussions.
Additionally, the timing of these developments has heightened the scrutiny of the SEC’s practices, particularly in light of Gary Gensler’s impending retirement in January. Gensler, who is frequently criticized for his harsh position on cryptocurrency, has encountered criticism regarding his regulatory enforcement strategy.
The stakes are still high for Ripple, as its ongoing case with the SEC has the potential to influence the future of crypto regulations in the United States. Garlinghouse’s agreement with Musk has contributed to the increasing demand for a pro-crypto regulatory framework.
Additionally, the incident underscores more extensive apprehensions regarding regulatory overreach. Numerous industry leaders contend that the agency’s primary objective of market equity is undermined by its emphasis on political agendas. As discussions intensify, all eyes are focused on the potential impact of these critiques on U.S. crypto policies in the post-Gensler era.
