Ripple CEO Calls On Lawmakers To Look Into Gensler’s Crypto Claims

By Kevin • April 7, 2023 11:37 am • Comments

Ripple CEO Brad Garlinghouse is challenging some of the recent claims that SEC Chair Gary Gensler made towards the crypto industry.

Gensler recently commented as part of a House Appropriations Committee hearing that there was no need to pass any new guidelines and legislation for regulating the crypto industry.

Gensler claims that the existing securities laws are already sufficient enough for the SEC to regulate crypto.

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Garlinghouse replied to these comments and stated that Gensler’s comments already assumes that crypto is considered securities and does not make any sense.

Furthermore, he shares how the crypto industry gets regulated cannot be left to interpretation by the SEC and that guidelines must be created to make it clearer.

Of course, Gensler’s comments indicate the opposite and claims that the SEC is in charge of defining securities and not the lawmakers.

CryptoPotato reports:

In contrast, Garlinghouse believes crypto should be regulated by legislation and not from the SEC’s perspective.

“For the Chair of the SEC to assert that he dictates what is a security – and not the legislation from which his agency derives its power – is beyond comprehension. It’s time for elected officials in the U.S. to take notice,” the Ripple boss stated.

Garlinghouse further accused Gensler of behaving like an autocrat. The Ripple CEO insisted that the SEC chairman felt he did not need regulatory clarity because he ran a bloated agency.

“When you behave like an autocrat running a $2.2B bloated agency, why would you ever want to provide clarity about what’s “in or out”? Without clear jurisdiction, ambiguity masquerades as power,” Garlinghouse said.

Meanwhile, the SEC and Ripple have been in a two-year-long legal battle over securities law violations. The agency sued Ripple in 2020 for offering unregistered securities by selling XRP tokens. The court is expected to give its verdict on the case before the end of the year.

Garlinghouse shares that Gensler’s recent comments are basically “beyond comprehension” as it is completely unaligned with the current state of the crypto industry.

Whether the House Appropriations Committee will actually listen to Gensler’s recent comments is another story, but Garlinghouse is certainly refuting every single one of the SEC’s comments.

He is now urging lawmakers to also respond directly to Gensler’s comments so that the issue can finally be addressed once and for all.

It is essential for lawmakers to hear both sides of the story because failing to do so will essentially give the SEC free control of regulating the industry.

U.today concludes:

In his tweet, Garlinghouse expressed his concern, stating that it is “beyond comprehension” for the SEC boss to claim that he dictates what constitutes a security, rather than relying on the legislation from which his agency derives its power.

Garlinghouse accused Gensler of behaving like an autocrat, suggesting that the lack of clear jurisdiction allows ambiguity to serve as a source of power for the SEC.

As the SEC lawsuit against Ripple continues, the debate over the appropriate regulatory framework for cryptocurrencies remains unresolved, prompting industry leaders to seek clarity from elected officials.

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