Garlinghouse Reacts to Proposed Cardano, Solana, and Polygon Classification as Securities

Brad Garlinghouse, the Ripple CEO, has responded to the latest proposal for the classification of Cardano, Solana, and Polygon  as securities. He joined the rest of the critics, saying that what played out is a valid proof of the hypocrisy found in the commission. 

Garlinghouse has accused the United States Security and Exchange Commission (SEC) of hypocrisy, insisting that the commissions are not always abiding by the rules of the game. Garlinghouse’s accusation was coming at a time when SEC announced it will be withdrawing its request seeking the court’s order to declare that some Binance’s  third-party tokens are actual tokens.

In the announcement, the SEC specified ten different tokens and termed them securities. Among the mentioned tokens includes the Cosmos (ATOM), Binance Coin (BNB), Sandbox (SAND), Binance USD (BUSD), Axie Infinity (AXS),  Decentraland (MANA), Cardano (ADA), Polygon (MATIC), Coti (COTI), and Solana (SOL).

Ripple Boss Slams SEC, Expresses Frustration in SEC’s Classification

SEC has also recently hinted that it won’t be seeking a court ruling before classifying the affected tokens s securities. The sudden change of mind has triggered a lot of mixed reactions from the global cryptocurrency community, with some tagging such moves as hypocritical. 

Garlinghouse slammed SEC, expressing his frustration in the inconsistency in the cryptocurrency regulations. The Ripple Boss says that the SEC is causing more harm to the cryptocurrency industry under Gary Gensler.

He said the commission is causing bigger confusion in the industry by indulging in selective justice in its own rules. Garlinghouse argued that the decision by the SEC was not motivated by its commitment to rule of law, but by strict political intentions. SEC so far has classified 68 different cryptocurrencies as securities, including the XRP.

The process of labelling these tokens as securities were done in different law suits, including cases involving Coinbase and Ripple. With the recent changes to the legal framework governing cryptocurrency regulation, Ripple Labs has found itself in a good situation.

SEC Bends Rules During Binance Classification Process 

The ongoing investigation against Binance has seen a dramatic shift in the United States  Securities and Exchange Commission’s (SEC) position, which has benefited Ripple’s XRP and the broader cryptocurrency market.

The SEC, which had earlier charged Binance with running an unlicensed stock exchange, declared that it was changing its litigation strategy. This regulation change was seen favourably by Ripple Labs, which is involved in its own legal disputes with the SEC.

The company’s position, which has been at the centre of its conflict with the SEC, has long been that XRP shouldn’t be categorized as a security. Many believe that the SEC’s more accommodating stance in the Binance case is a sign of a larger regulatory change that would eventually benefit Ripple.

SEC Considers Dropping Some Cryptocurrencies from the List of Securities 

The market responded to these changes very quickly. The price of XRP surged dramatically after it had been lagging due to legal uncertainty. After the SEC made its decision, XRP’s value increased by more than 25% in a few hours, hitting its highest points in months.

Industry experts are of the opinion that the decision by SEC to drop some Solana, Polygon, and Cardano from the list of its securities lawsuit against Binance may expedite its legal suit against Ripple. This development has greatly boosted XRP investor confidence.

The current amendment made on Binance is expected to strengthen Ripple’s position in the present turbulent SEC classification process. The recent price breakout in XRP has readied the stage for a future price rally towards the $0.90 price mark.

It is also believed that any breach at this stage may end up attracting a parabolic ascent that would propel the price of XRP to a new All time high. The expected bullish trend is a reflection of XRP’s current price performance. Meanwhile, the price of XRP has grown by 8% in the last 24 hours, further strengthening its price position at $0.65 hence, increasing the market capitalization to $36.2 billion.