Brad Garlinghouse, CEO of Ripple, has publicly criticized Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC). And yes, that was a harsh attack, to say the least. Garlinghouse accuses the SEC of regulatory overreach under Gensler's leadership. He argues that the watchdog's approach has stifled innovation in the crypto sector. And as such, is an obstacle that prevents cryptocurrencies to make their way into the world of traditional finance. The Ripple CEO's remarks followed a recent crypto roundtable. Attendees included Mark Cuban, Coinbase CLO Paul Grewal, and Circle CSO Dante Disparte. Garlinghouse praised U.S. Congressman Ro Khanna for his leadership in the crypto industry. He sees the roundtable as a positive step towards action. However, Garlinghouse expressed frustration with Democrat support for Gensler. "Unfortunately, the majority of Dems continue to enable Gensler's unlawful war on crypto," he stated on X (formerly Twitter). The CEO believes this stance is hampering American innovation. He noted that the GOP has consequently adopted a pro-crypto position. Garlinghouse didn't mince words about Gensler's legacy. "He will go down as the Luddite of his time," he predicted, quoting famous historical parallel. And that is a very harsh comment for Gensler to take. Coinbase's Grewal emphasized the need for legislation over litigation. He highlighted the personal nature of crypto policies for many Americans. Grewal pointed out that 52 million Americans have owned cryptocurrency. He argued that opposing their access to the financial system alienates these voters. The Coinbase executive sees hope in the recent roundtable. He stressed the nonpartisan nature of the current momentum around crypto.

The Supreme Court's recent decisions have significantly weakened the Securities and Exchange Commission's regulatory power over cryptocurrencies. Two key rulings in June and July have reshaped the landscape for crypto startups. And that is an important decision, no one is talking about for some reason. The first case, Loper Bright Enterprises v. Raimondo, ended the Chevron doctrine. This doctrine had previously given federal agencies broad interpretive powers over ambiguous statutes. The court's decision now requires agencies to defend their interpretations in court like any other party. The crypto industry has long grappled with regulatory uncertainty. Multiple agencies, including the SEC, have attempted to extend their reach into this evolving sector. This has created a challenging environment for startups, particularly in decentralized finance (DeFi). DeFi startups face a complex regulatory landscape. "While DeFi could radically improve financial access for the unbanked and transform our financial system, regulators have no idea how to classify DeFi services," industry experts note. This uncertainty has hindered compliant operations. Despite these obstacles, the sector has continued to innovate. The growth has occurred in spite of regulatory headwinds. The Loper Bright decision marks a significant shift. Courts are no longer bound by agency interpretations. Federal agencies must now convince courts of their correctness, just like any other litigant. A second ruling, Corner Post Inc. v. Board of Governors of the Federal Reserve System, further bolstered startups' position. It clarified when the six-year statute of limitations for challenging regulations begins. Previously, this window started when a rule was published. The new interpretation allows challenges to begin when a company starts operations affected by the rule. This opens the door for newer entities to contest long-standing regulations. These combined decisions create a more favorable environment for regulatory challenges. Crypto startups now have powerful tools to push back against "unwarranted regulatory creep," as one analyst put it. The full impact of these rulings remains to be seen, and that is not an understatement, no even a bit.

Robinhood, a major retail trading platform, is exploring the launch of crypto futures in the US and Europe. The company has not set a specific timeline for this potential expansion, but it seems that this teeny tiny revolution is already looming at the horizon. The move follows Robinhood's recent acquisition of Bitstamp, a cryptocurrency exchange. With that purchase Robinhood immediately became quite a prominent player in the crypto industry. Johann Kerbrat, Robinhood's general manager of crypto, commented on the acquisition. He emphasized Bitstamp's resilience and strong reputation among investors. The acquisition also aims to bolster Robinhood's international expansion. But what's even more important, the move also seeks to attract institutional customers to the platform. Though institutional trade might have questionable consequences for Robingood in the light of some recent events. In May, Robinhood received a Wells Notice from the SEC. This warning indicates potential legal action against the company. Dan Gallagher, Robinhood's chief legal officer, responded to the notice. He asserted that the assets on their platform are not securities, and as such shouldn't be in sight of SEC. Gallagher stated, "We firmly believe that the assets listed on our platform are not securities." Robinhood, founded in 2013, has become a prominent player in retail investing. It gained popularity for its commission-free trades and user-friendly mobile app. Millions of users come to the platform to buy and sell stock, ETF, options, and cryptocurrency.

The US Securities and Exchange Commission (SEC) has rejected Ripple Labs' proposed $10 million fine for selling XRP to institutional investors, insisting on a $2 billion penalty. The SEC believes that Ripple's proposed punishment is too lenient.  In December 2020, the SEC filed a lawsuit against Ripple, alleging that it had sold unregistered securities in the form of XRP worth roughly $1.3 billion. In July 2023, Judge Analisa Torres ruled in favor of Ripple, stating that program sales and other token distributions do not constitute the offering and implementing investment contracts. However, the judge also ruled that selling coins to large industry players violated US securities laws. In a recent appeal, the SEC questioned Ripple's integrity, highlighting the risks of further law violations by the company. According to the SEC, Ripple has been trying to downplay its responsibility while emphasizing its cooperation with the authorities since the initial offering of XRP coins in 2013.