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Ripple CEO slams SEC chairman Gensler for dictating which crypto tokens are securities – Regulation Bitcoin News
Ripple CEO Brad Garlinghouse has criticized Securities and Exchange Commission (SEC) Chairman Gary Gensler for asserting that he has the authority to decide which crypto tokens are securities, instead of relying on the legislation that governs the agency’s power. “It’s time for elected officials in the United States to take notice,” the Ripple CEO emphasized.
Ripple’s CEO Slams SEC Chairman Gensler Over What’s a Security
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 chairman of the SEC to claim that he dictates what constitutes a security — and not the legislation from which his agency derives its power — is beyond comprehension. It’s time for elected officials in the United States to take notice.
“When you act like an autocrat running a bloated $2.2 billion agency, why would you ever want to provide clarity about what’s ‘in or out’? Without clear jurisdiction, ambiguity masquerades as power,” Garlinghouse warned.
The Ripple executive made this statement in response to Gensler’s claim that current securities laws “cover most of the activity that happens in the crypto markets.” The SEC chief was quoted as saying, “If Congress were to act, although I don’t think we need that authority, not to inadvertently undermine through definitions of what’s in or out, or essentially to allow conflicts that we don’t allow . . . Gensler warned:
I think many of the legislative vehicles, if enacted, would undermine the securities mission.
Since the SEC filed suit against Ripple, Garlinghouse and co-founder Chris Larsen in December 2020, the company has been embroiled in a legal dispute with the securities regulator. The SEC claimed that XRP is a security, but Ripple and Garlinghouse have consistently argued that it is not.
On several occasions, Gensler has emphasized the importance of cryptocurrency exchanges and lending platforms coming in to discuss how to be compliant with the SEC. However, Garlinghouse has accused the securities watchdog of holding meetings with crypto companies primarily for the purpose of generating leads for its enforcement department. There have also been widespread complaints that the SEC does not provide clear regulatory guidelines, making it difficult for companies in the crypto space to ensure compliance.
Recently, Nasdaq-listed crypto exchange Coinbase received a Wells notice from the SEC regarding potential violations of securities laws. The company noted in its response: “SEC won’t let crypto companies ‘come in and sign up’ – we tried.” Meanwhile, Gensler has repeatedly stated that all crypto-tokens, except for bitcoin, are considered securities.
What do you think of Gensler trying to dictate what constitutes a safety? Let us know in the comments section below.
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