The US Securities and Exchange Commission (SEC) has taken an inconsistent approach to regulating the cryptocurrency industry. This was stated by Ripple president Brad Garlinghouse at the Collision conference in Toronto.

The CEO of the company recalled that in December 2020, the SEC accused Ripple of selling unregistered securities in the form of XRP. According to him, the regulator’s inconsistent action was the approval of Coinbase’s listing on the Nasdaq in April 2021, even though the bitcoin exchange was “swapping the token.”

“[…] They allowed Coinbase to go public even though Coinbase is not a registered brokerage house. There are some contradictions within their organization here. SEC’s right hand doesn’t know what the left is doingGarlinghouse explained.

After the SEC lawsuit was filed against Ripple, Coinbase stated that it will stop trading XRP for users in all regions served. Later, the Commission still had claims against the exchange, but for a different reason – the regulator warned the company of legal prosecution for Lend’s crypto savings accounts.

Subsequently, Garlinghouse backed Coinbase, stating that the SEC “is continuing the war against cryptocurrencies.”

During the conference, the Ripple chairman stated that the Commission used a coercive approach “rather than working to create clear regulation.” According to him, this is “innovation stifled in the United States.”

“I don’t think [криптовалюты] It’s the Wild West. Cryptocurrencies are definitely a volatile asset class […]. There is some level of volatility across all asset classes, and I don’t think it’s up to the regulator to determine how consumers and businesses should access it,” Garlinghouse added.

In September 2021, SEC Chairman Gary Gensler compared cryptocurrencies to the “Era of Free Banking” from 1837 to 1863. Later, he repeated this idea and expressed the importance of regulating the sector.

This isn’t the first time Garlinghouse has criticized the SEC. In the fall of 2021, he accused the Commission of failing to provide clear legal guidelines for the industry.

Recall that in May 2022, the CEO of Ripple announced the desire of participants in the crypto industry to do the right thing in terms of regulation and the need for a transparent regulatory framework.

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