Ripple CEO calls out Gensler’s “dictation” on crypto regulation
Ripple CEO Brad Garlinghouse condemned SEC Chairman Gary Gensler’s stance on crypto regulations. The executive called the statements showing the SEC Chair “dictating” which crypto-assets should be treated as a value. He even urged “elected officials” to take note of the matter. Crypto regulations have been a hot topic for a long time now, and the regulatory actions of the past few months have the community looking for more clarification.
Garlinghouse took to Twitter on Friday 31. March and criticized Gensler’s statements during testimony before the House Financial Services Subcommittee. During the meeting, the SEC chairman laid out the agency’s 2024 budget request and pointed to the rapidly changing technology space.
In his address, Gensler lashed out at the broader cryptocurrency market, calling it a “Wild West” that is “riddled with non-compliance.” He added that investors are putting their “hard-earned assets at risk.” In many previous instances, he stated that most of the coins and tokens available in the crypto market are securities and reiterated the same during the meeting.
Asked about specific plans to suggest that digital assets are likely to fall under existing securities laws, the SEC chief avoided saying they could not be more clear. He stated that regulations for crypto are already there while citing securities regulations.
The executive director of the payment protocol called the claim of Gensler as dictating to declare an asset as a value instead of following “the law.” He considers this “beyond comprehension” and calls on US officials to intervene.
He called out Gensler, he said,
“When you’re acting like an autocrat running a bloated $2.2 billion agency, why would you ever want to clarify what’s ‘in or out’?
Without clear jurisdiction, ambiguity masquerades as power.”
During the meeting, the SEC chairman also laid out the budget requirements for the coming year. He sought a substantial amount of US$2.43 billion that the agency is likely to allocate for its enforcement actions in the crypto space.
The broader crypto community has registered its displeasure at not having proper clarity in crypto regulations. This leaves the burgeoning asset class industry with a dilemma about where to take the next steps, as no one knows the line that is forbidden to cross.
The United States Securities and Exchange Commission has been witnessing the crypto industry in full action since the latter part of last year. Instances like the Terra (LUNA) network fall, the demise of Three Arrows Capital, Celsius and Voyager-like companies, leading crypto exchange FTX filing for bankruptcy and several others prompted the agency to enforce regulation over the market.
