Ripple CEO slams SEC chair for being a ‘political liability’ and hindering crypto innovation

Ripple CEO Brad Garlinghouse has launched a scathing attack on SEC chair Gary Gensler, calling him a ‘political liability’ and accusing him of stifling the crypto industry with his rigid and repetitive regulatory actions.

Garlinghouse made these remarks in an interview with CNBC at the World Economic Forum in Davos on Jan. 16, where he also discussed the prospects of ETFs linked to other cryptocurrencies and Ripple’s plans for 2024.

Garlinghouse said that Gensler’s approach to crypto regulation has not changed even after the SEC approved the first Bitcoin ETF in the U.S. last year. He claimed that Gensler is not acting in the best interest of the American people and is hampering the long-term growth of the economy.

He also challenged Gensler’s assertion that most crypto assets are securities and should be regulated as such. He argued that this view is driven by a political agenda rather than an economic or protective one. He added:

“I think Gary Gensler is doing the same thing over and over again, expecting to win in court, despite repeated losses.”

Garlinghouse contrasted the U.S. regulatory environment with more proactive and supportive approaches in the EU and other regions. He expressed concern that the U.S. is falling behind in creating a clear and comprehensive framework for crypto regulation, which could affect its global competitiveness.

However, he also predicted that there could be some positive legislative developments in 2024, as it is an election year. He said that the U.S. is not too late to catch up and can still maintain its leadership position if the regulatory landscape changes for the better.

Garlinghouse also said that stablecoin regulation is the most likely to happen soon, as they are widely used in the crypto space. He echoed the sentiments of Circle CEO Jeremy Allaire, who recently said that stablecoins are the future of money and need proper oversight.

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