The U.S. Securities and Exchange Commission (SEC) has been making headlines recently with its legal action against two prominent cryptocurrency exchanges, Coinbase and Binance, alleging the sale of unregistered securities. Ripple's XRP token was not mentioned in the lawsuits, but the blockchain company's CEO, Brad Garlinghouse, believes there is a deeper reason behind the SEC's actions.

Garlinghouse accused SEC Chair Gary Gensler of overreaching and asserted that the regulator is trying to make amends after failing to prevent the FTX crash last year. He further criticized Gensler and the agency for not having the power they crave, stating that it is embarrassing to watch an unelected bureaucrat flail like this to mask the fact.

The CEO's comments have sparked a debate among industry experts, with some pointing out that the SEC's recent moves could be part of a broader crackdown on the cryptocurrency industry. Others say that the SEC is simply trying to enforce existing regulations and protect investors.

Despite the ongoing legal battle between Ripple and the SEC over XRP, the blockchain company appears to be taking a backseat in the current wave of lawsuits.

Coinbase and Binance are facing allegations of selling unregistered securities, with the SEC claiming that these assets are subject to federal securities laws. The exchanges have argued that their tokens do not qualify as securities and have vowed to fight the charges.

Whether or not Garlinghouse's claims hold any merit, it is clear that the SEC's recent actions have sent shockwaves through the cryptocurrency industry. As the regulatory landscape continues to evolve, it remains to be seen how the industry will respond to these challenges and what impact they will have on the market.