On June 16, Ripple CEO Brad Garlinghouse recently released a video on Twitter. In this regard, he said, after seeing Dr. Hinman’s emails, which were released by the US Securities and Exchange Commission (SEC) due to legal pressure, he felt compelled to document the information.
Dr. Hinman, the Securities and Exchange Commission, and regulatory measures related to cryptocurrency that the agency seems reluctant or unable to implement in the United States were all focal points of Garlinghouse’s findings.
Despite Garlinghouse’s rare video posts, he found it necessary to address the cryptocurrency community after a challenging week.
The Securities and Exchange Commission failed to reach a regulatory agreement
He expressed that after two years, seven court orders, and more than $100 million in legal fees, the SEC finally turned over records related to Hinman’s letter, internal communications within the regulator, and other related materials.
Based on documents cited by Garlinghouse, the SEC has failed to reach consensus on the legislation required to regulate cryptocurrencies, specifically when a token no longer qualifies as a security. Furthermore, they warned Hinman that his speech would further confuse the audience.
Further, he highlighted, “Hinman received substantial payments through his law firm, which has partnered with other parties with vested interests in the above letter.” At the same time, he was employed by the SEC.
(embed) https://www.youtube.com/watch?v=ppMKgcJ_vY8 (/embed)
According to Garlinghouse, the documents reveal that the SEC has aggressively pursued enforcement action against cryptocurrency entities while pretending to be open and urging them to register, even though they have been consistently deceived about their alleged guidelines.
Garlinghouse asserts that Ripple had proactively engaged with the SEC regarding compliance with cryptocurrency regulations for years prior to this incident.
He had discussed the complaint against Ripple with Jay Clayton, the SEC chairman at the time, who filed it the day before he resigned in 2020, and William Hinman, although they had no legal representatives.
Neither Clayton nor Hinman ever indicated that XRP, the parent currency of the XRP Ledger, was a security. Garlinghouse claims that the information he gave them in confidence was later used against Ripple in court.
According to Garlinghouse, the SEC declined to share any details regarding the charges mentioned in Wells’ notice to Ripple, indicating that they were considering filing a lawsuit for possible violations of securities laws.