Ripple CEO Lambasts SEC Chair Gary Gensler for Crypto Regulation Handling

In a recent development of the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), Brad Garlinghouse, the CEO of Ripple, launched a scathing attack on the regulatory body and its current chair, Gary Gensler. Garlinghouse’s criticisms were prompted by the unsealing of the Hinman speech documents, which have become a pivotal point of contention in the Ripple vs. SEC case.

Expressing his sentiments in a Twitter video on June 16, Garlinghouse characterized Gensler as a “bureaucrat” who was utilizing regulation as a weapon. The Ripple CEO asserted that his company’s case was representative of the SEC’s broader crackdown on the cryptocurrency industry. He accused the regulatory body of deliberately creating confusion around regulations and exploiting this ambiguity to selectively enforce its will.

According to Garlinghouse, “The SEC is looking to kill crypto innovation in the United States, and its current chair, an unelected bureaucrat, I might add, is weaponizing the lack of regulatory clarity to exert jurisdiction over the entire crypto space. This is the definition of putting politics over people. It’s the pursuit of power over sound policy.” He further alleged that the SEC had attempted to intimidate Ripple into compliance despite the absence of a clear policy, but his company had the resources to fight back.

Garlinghouse argued that the unsealed Hinman speech documents revealed the SEC’s true intentions, claiming that the regulatory body knowingly sowed confusion about the rules and subsequently used that confusion as a basis for enforcement. He denounced this approach as acting in bad faith.

Moreover, the Ripple CEO questioned the SEC’s decision to file charges against Ripple despite previous engagements between the two parties. Garlinghouse emphasized that Ripple had provided complete transparency during their meetings with the SEC, answering all the regulator’s questions. He asserted, “We answered every question they had, and not once did they suggest to me that XRP was a security. We were fully transparent, not knowing they would then use this information against us.”

The public dispute between Ripple and the SEC reflects the broader tensions surrounding cryptocurrency regulation. As the crypto industry continues to evolve and gain mainstream attention, regulatory bodies face the challenging task of balancing investor protection and fostering innovation. The outcome of the Ripple vs. SEC case is expected to have significant implications for the future of cryptocurrency regulations in the United States.

As the legal battle intensifies, it remains to be seen how the court will ultimately rule on the matter. The allegations made by Brad Garlinghouse against the SEC and Gary Gensler shed light on the increasingly contentious relationship between regulators and the cryptocurrency industry.

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