Brad Garlinghouse criticized Robert Stebbins for his role in controversial cryptocurrency policies under the SEC's previous leadership.
Ripple executives believe Stebbins’ appointment could revive the SEC's contentious regulation-by-enforcement approach.
Ripple's legal team and crypto leaders backed Dan Gallagher, the leading candidate, for SEC chairmanship over Stebbins.
Brad Garlinghouse, Ripple’s CEO, has voiced strong opposition to Robert Stebbins, a top contender to replace SEC Chair Gary Gensler. Citing Stebbins’ involvement in contentious cryptocurrency policies, Garlinghouse described his potential appointment as "unconscionable." His comments referenced the controversy surrounding former SEC official William Hinman’s 2018 speech, which identified Ethereum as a non-security.
https://twitter.com/bgarlinghouse/status/1858669647953883282
Ripple Leader Cites Hinman Controversy
Garlinghouse highlighted Stebbins’ direct role in approving policies during Hinman’s tenure as the Director of Corporation Finance. Ripple has long criticized the speech for allegedly favoring certain cryptocurrencies while disadvantaging others. Garlinghouse stated that Stebbins’ history with the SEC would undermine regulatory fairness in the industry.
“In a group of strong candidates for SEC Chair, it’s unconscionable to consider someone directly involved in Bill Hinman’s unethical and likely illegal actions,” Garlinghouse wrote on social media.
Stebbins Faces Crypto Industry Backlash
Robert Stebbins, who served as General Counsel during Jay Clayton's chairmanship, has drawn significant criticism from cryptocurrency leaders. Many argue that his policies promoted a “regulation by enforcement” approach that hindered innovation. Some have likened his potential leadership to a continuation of the Clayton-era tactics, which Ripple and other companies claim targeted the crypto industry unfairly.
Ripple’s legal team has also joined the criticism. Stuart Alderoty, Ripple’s Chief Legal Officer, recently accused Stebbins of perpetuating outdated policies that stifled progress in the digital asset sector.
Dan Gallagher Emerges as a Strong Contender
While Stebbins remains a candidate, Robinhood’s Chief Legal Officer Dan Gallagher has emerged as a frontrunner for the SEC Chair position. Prediction markets currently show Gallagher with a 61% chance of securing the role. Gallagher, a former SEC Commissioner, has gained support from many in the crypto community for his perceived balanced approach to regulation.
Meanwhile, Garlinghouse and Ripple’s legal team have expressed optimism about Gallagher’s candidacy, viewing it as a step toward fostering clearer and more consistent guidelines for the cryptocurrency sector.
