Ripple CEO Brad Garlinghouse has criticized Securities and Exchange Commission (SEC) Chairman Gary Gensler for claiming he has the authority to determine which crypto tokens are securities, rather than relying on legislation governing power from your agency. “It is time for elected officials in the US to take note,” emphasized the Ripple executive.
Ripple CEO Criticizes SEC Chairman Gensler For What He Is A Value
Ripple Labs CEO Brad Garlinghouse has criticized US Securities and Exchange Commission (SEC) Chairman Gary Gensler for dictating which crypto tokens are securities. Garlinghouse tweeted on Thursday:
For the SEC chairman to claim that he dictates what a security is, and not the legislation from which his agency derives its power, is beyond comprehension. It is time for elected officials in the US to take notice.
“When you’re behaving like an autocrat running a bloated $2.2 billion agency, why would you want to provide clarity on what’s ‘in or out’? Without clear jurisdiction, ambiguity masquerades as power,” Garlinghouse warned.
Ripple executive did this statement in reaction to Gensler’s assertion that current securities laws “cover most of the activity that is occurring in the crypto markets.” The head of the SEC was quoted as saying: “If Congress were to act, while I don’t think we need these authorities, it would not inadvertently undermine it through definitions of what is in and what is out, or in essence allowing conflicts that we do not allow. .” Gensler warned:
I think many of the legislative vehicles, if adopted, would undermine the values mandate.
Since the SEC filed a lawsuit against Ripple, Garlinghouse, and co-founder Chris Larsen in December 2020, the firm has been embroiled in a legal dispute with the securities regulator. The SEC claimed that XRP it is a security, but Ripple and Garlinghouse have always argued that it is not.
On several occasions, Gensler has emphasized the importance of cryptocurrency exchanges and lending platforms in discussing how to comply with the SEC. However, Garlinghouse accused the securities watchdog of holding meetings with crypto firms primarily for the purpose of generating leads for its Compliance Division. There have also been widespread complaints that the SEC does not provide clear regulatory guidance, making it difficult for companies in the crypto space to ensure compliance.
Recently, Nasdaq-listed cryptocurrency exchange Coinbase received a notice from Wells from the SEC about possible securities law violations. The company noted in its response: “The SEC won’t let cryptocurrency companies ‘go in and register’; we tried.” Meanwhile, Gensler has repeatedly expressed the opinion that all crypto tokens besides bitcoin are considered securities.
What do you think about Gensler trying to dictate what a value is? Let us know in the comments section.
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