Brad Garlinghouse’s Response to the New York Times
Brad Garlinghouse, the CEO of Ripple, has voiced strong objections to a recent article by the New York Times, labeling it as a detrimental piece aimed at the newly appointed leadership of the U.S. Securities and Exchange Commission (SEC). He contends that the article presents a misleading story about the SEC’s decision to withdraw from certain cryptocurrency enforcement actions.
According to Garlinghouse, the Times implies that the SEC’s reduced activity is rooted in political bias, whereas he believes it should be viewed as a vital shift away from an enforcement approach that he deems “illegal” and lacking legal grounding, a strategy previously endorsed by former SEC Chair Gary Gensler.
Criticism of the Article’s Context
Garlinghouse specifically highlights the article’s failure to include important context regarding recent judicial criticism of the SEC’s actions. He refers to a notable ruling from the D.C. Circuit Court of Appeals, where judges rebuked the SEC for its refusal to approve a Bitcoin exchange-traded fund (ETF), calling the agency’s reasoning “arbitrary and capricious.” Additionally, he points to a case involving the SEC, where a federal judge imposed sanctions on the agency for providing “materially false and misleading representations.”
“This is not journalism. This is actively advancing a false and failed narrative,”
Garlinghouse stated emphatically.
Support from the Cryptocurrency Sector
Others in the cryptocurrency sector have echoed his sentiments. Paul Grewal, who serves as Chief Legal Officer at Coinbase, and Alex Thorn, head of research at Galaxy Digital, have also criticized the New York Times for the way it framed the SEC’s current situation. Grewal observed that while the article suggests corruption, the journalists themselves admitted to finding no supporting evidence for such claims. He argued that without proof of undue pressure or influence, the notion of political favoritism is unfounded.
Thorn further contended that the New York Times utilizes what is known as the Gell-Mann amnesia effect—where readers forget the true context of events and accept narratives that don’t align with reality. He views the previous SEC administration’s methods as both politically and legally unsustainable, accusing the Times of contributing to a form of “crypto dementia” among its audience, who may overlook these critical details.
