Garlinghouse Joins Musk and Ramaswamy in Criticizing SEC

• Garlinghouse joins Musk in criticizing SEC amid Ripple’s ongoing legal battle over XRP.
• Musk calls the SEC a “political tool,” fueling growing concerns over crypto regulation.
• Legal experts and politicians urge SEC reform as Gensler prepares to step down in Jan 2025.

Ripple CEO Brad Garlinghouse has joined Elon Musk in criticizing the US Securities and Exchange Commission (SEC). Garlinghouse’s backing arrives as Ripple continues to fight a legal war with the SEC over the classification of its asset, XRP. This has created more controversies about the SEC’s policies on cryptocurrencies.

Musk Slams SEC’s Role

On Friday, in an X post, Garlinghouse reposted Musk’s comments, in which the latter referred to the SEC as a weaponized institution used for dirty work. The comments came after Gensler, the SEC Chair, had sent a letter to Musk’s company, Neuralink. This only added fuel to the fire, as Musk’s criticism of the SEC has attracted the attention of politicians and crypto enthusiasts.

Garlinghouse’s support for Musk is a surprise, given that Ripple remains embroiled in a legal battle with the SEC over XRP’s classification. The SEC has stated that XRP is a security and should be regulated. Despite this, Ripple has been standing its ground and claiming that XRP is a digital asset instead of a security. The implications of this case hold significance for the future of how the U.S. government regulates cryptocurrencies.

Lawyers and other political figures have stepped in to comment on the SEC’s actions. Cory Liu, a law professor at the University of Texas, mentioned a recent court decision in which the SEC was downplayed. The court said that the SEC went too far in forcing companies to adopt a quota system for the diversity of boards of directors. According to Liu, the SEC should focus on fair trading in the market rather than imposing political agendas.

Presidential candidate Vivek Ramaswamy and U.S. Senator Mike Lee have also criticized the SEC. According to Ramaswamy, the SEC has suffered several legal setbacks that have eroded its integrity. Lee stated, “The SEC is yet another “independent commission” that cannot be trusted.

Garlinghouse Calls for Change

Garlinghouse has been among the most vocal opponents of the SEC’s approach to cryptocurrency. His endorsement of Musk thus makes him one of the personalities who have urged for better and more favorable rules on cryptocurrencies in the US. Depending on the outcome of the Ripple case, this result may define the future of cryptocurrencies in the country.

The upcoming resignation of SEC Chairman Gary Gensler in January 2025 has given the crypto community hope. Several experts have speculated that his exit may indicate a change in the corporation’s stance on crypto adoption. As Gensler departs, the fate of US crypto regulation now depends on the next head, Paul Atkins, and the market is closely watching the developments indicating new policy shifts.

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