Ripple CEO Brad Garlinghouse expressed his surprise at the recent statements made by former Securities and Exchange Commission (SEC) Chair Jay Clayton. In a video shared by XRP influencer Crypto Eri, Clayton’s comments during an interview with the Council on Foreign Relations on November 21, 2023, were featured.
Reason for Garlinghouse’s Disbelief
Clayton’s remarks during the interview appeared to be a departure from his previous regulatory stance, particularly in his empathetic tone towards entrepreneurs and retail investors in the cryptocurrency space. This contrasts with his actions as SEC Chair, including the lawsuit against Ripple in December 2020.
Clayton also expressed frustration with the regulatory landscape and suggested making it easier for companies to raise capital and for non-accredited investors to participate in opportunities. He emphasized the need to recognize cryptocurrency as technology and consider its regulatory treatment based on this perspective.
Clayton’s comments on the classification of cryptocurrencies as securities or commodities were also noteworthy, indicating that he believes the market should decide and that the classification issue is overemphasized.
Classification of Crypto Is “Pretty Easy”
This view stands in contrast to the SEC’s aggressive actions during Clayton’s leadership, particularly the lawsuit against Ripple. Garlinghouse’s reaction to Clayton’s comments reflected the disbelief felt within the XRP community, emphasizing the irony and frustration surrounding the SEC’s actions in the crypto space.
The lawsuit against Ripple, filed just before Clayton’s departure from the SEC, had a significant impact on XRP, leading to a large sell-off and raising concerns about the timing and potential conflicts of interest. The XRP community has been vocal in its criticism, accusing Clayton of hypocrisy for suing Ripple while advocating for a more technology-focused approach to regulation later on.
At the time of this report, XRP was trading at $0.6084.
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