Ripple CEO Brad Garlinghouse expressed frustration with the SEC’s tough stance on crypto regulations after the agency sued Cumberland for operating as an unregistered securities dealer. In a recent post on X, Garlinghouse highlighted critical comments from SEC Commissioner Mark Uyeda, who labeled the commission’s approach to crypto as disastrous.
In an interview with FOX Business, Uyeda pointed out that the SEC has been using enforcement actions to regulate the crypto industry. However, he emphasized that the agency has failed to provide clear guidance for companies. Most of the existing crypto regulations have been shaped by court rulings, but the outcomes have been inconsistent. Uyeda remarked on the general frustration within the SEC about the lack of clear instructions on how to register as a broker-dealer or an exchange.
Garlinghouse Calls for Change in SEC’s Tactics
Garlinghouse, commenting on Uyeda’s statements, pointed out that even those inside the SEC are beginning to question its crypto strategy. He noted that Uyeda’s comments surfaced just as the SEC charged Cumberland with federal securities violations. “This circus needs to stop,” Garlinghouse stated, echoing his discontent with the situation.
Related article: Ripple Strikes Back: Cross-Appeal Targets SEC Verdict
The SEC recently accused Cumberland of acting as an unregistered securities dealer, claiming it sold $2 billion worth of crypto assets via third-party exchanges since 2018. The SEC identified five cryptocurrencies—Cardano (ADA), Algorand (ALGO), Solana (SOL), Polygon (MATIC), and Filecoin (FIL)—handled by Cumberland as securities.
Cumberland Criticized SEC’s Approach
In response, Cumberland criticized the SEC’s enforcement-first strategy, arguing it stifles innovation and hinders legitimate business operations.
The company noted bipartisan criticism of the SEC, with lawmakers accusing the agency of not collaborating with Congress.
Related article: Ripple CEO Confident in XRP ETF as SEC Receives New Application
Despite efforts to comply with regulations, including acquiring a broker-dealer in 2019, the SEC restricted Cumberland’s ability to trade only Bitcoin (BTC) and Ethereum (ETH). Cumberland stated it would not alter its business practices despite the recent lawsuit.
Top crypto figures reacted to the SEC’s move, including Justin Slaughter from Paradigm. However, he suggested that SEC Chair has a hidden agenda to crush the crypto industry in favor of traditional markets.
Ripple’s CEO signaled his agreement with Slaughter’s remarks, amplifying them with emojis on social media.
