Ripple CEO criticises candidate for SEC chair
Industry leaders oppose SEC chair candidate over concerns of regulatory bias in crypto sector
Ripple CEO Brad Garlinghouse has publicly criticized Bob Stebbins, a former SEC General Counsel and a key contender for the role of U.S. SEC Chair.
Garlinghouse expressed concerns about Stebbins’ past involvement in regulatory decisions that he believes were unfairly detrimental to the cryptocurrency industry. His opposition highlights ongoing tensions between the crypto sector and U.S. regulatory authorities, reports CoinGape.
Criticism of Stebbins’ Track Record
Garlinghouse accused Stebbins of playing a role in controversial SEC practices, including the 2018 “Ethereum speech,” which classified Ethereum as a non-security. Garlinghouse argued that this decision favored Ethereum while ignoring similar concerns from other crypto companies, exemplifying what he described as the SEC’s habit of “picking winners and losers.” He called the potential appointment of Stebbins “unconscionable,” citing fears that his leadership could perpetuate inconsistencies in regulatory enforcement.
Ripple’s Chief Legal Officer Stuart Alderoty echoed Garlinghouse’s concerns, pointing to Stebbins’ ties to former SEC Chair Jay Clayton, who initiated the lawsuit against Ripple in 2020. Alderoty suggested that Stebbins’ candidacy could undermine efforts to establish regulatory clarity, a pressing need for the cryptocurrency industry.
Community Concerns and Industry Reaction
Prominent crypto lawyer John Deaton also voiced opposition, labeling Stebbins “Clayton 2.0” and warning that his leadership could continue the SEC’s enforcement-driven approach. Deaton advocated for a candidate who would prioritize regulatory transparency and fairness. He has previously endorsed Brandi Bondi for the role, emphasizing the need for balanced leadership to foster innovation and retain U.S.-based crypto companies.
Stebbins’ record includes approving approximately 80 cryptocurrency enforcement actions during his tenure at the SEC, many of which targeted U.S. firms. Critics argue that these actions were overly punitive and stifled innovation. Stebbins has also faced backlash for his involvement in decisions perceived as favoring specific crypto assets while aggressively pursuing others, including Ripple.
The Path Ahead for SEC Leadership
The Biden administration is reportedly considering several other candidates for the SEC Chair position, including Dan Gallagher, Paul Atkins, Richard Farley, and current Commissioner Mark Uyeda. The crypto industry remains hopeful that the next SEC leader will adopt a more balanced approach, fostering innovation while ensuring regulatory clarity.
Garlinghouse has emphasized the need for fair treatment of crypto firms like Ripple, Coinbase, and Circle, advocating for leadership that will prioritize clarity over enforcement. The selection of the next SEC Chair will be critical in shaping the future of cryptocurrency regulation in the U.S., influencing whether the country remains a hub for digital innovation or continues to drive firms to relocate abroad.
Recently we wrote, that Coinbase CEO Brian Armstrong met with President-elect Donald Trump on Monday to discuss potential "personnel appointments," according to The Wall Street Journal.
