Ripple CEO Challenges SEC Chair’s Authority on Cryptocurrency Regulation
In a recent development in the ongoing regulatory battle over the cryptocurrency industry, Ripple CEO Brad Garlinghouse has called upon US lawmakers to address recent statements made by SEC Chair Gary Gensler. Garlinghouse has accused Gensler of overstepping his authority by asserting that the existing securities laws are adequate for regulating the crypto market.
In a tweet, Garlinghouse criticized Gensler’s approach, stating that “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’?” He also argued that decisions about the regulatory framework for cryptocurrencies should be based on legislation rather than personal viewpoints.
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.
Read that again.
— Brad Garlinghouse (@bgarlinghouse) March 30, 2023
Gensler’s comments came after a House Appropriations Committee hearing in which he suggested that current securities laws were broad enough to encompass most of the activities occurring within the crypto market. He added that while Congress could act to provide further clarification, he did not believe that additional authorities were necessary.
Garlinghouse’s response is the latest salvo in the ongoing battle between Ripple and the SEC. In December 2020, the SEC filed a lawsuit against Ripple, alleging that the company’s XRP token was a security that had been sold without proper registration. The lawsuit has been closely watched by the crypto industry as it could set a precedent for the treatment of other cryptocurrencies.
The case has also sparked a broader debate about the appropriate regulatory framework for the cryptocurrency industry. While some argue that existing securities laws are sufficient, others believe that a new regulatory framework is needed to address the unique characteristics of cryptocurrencies.
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