Ripple CEO Brad Garlinghouse has criticized Securities and Exchange Commission (SEC) Chairman Gary Gensler for claiming he has the authority to determine which crypto tokens are securities, rather than relying on legislation which regulates the power of his agency.“It’s time for elected officials in the US to take notice,” the Ripple executive stressed.
Ripple CEO criticizes SEC chairman Gensler on what a security is
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 Thursday:
For the chairman of the SEC to claim that he dictates what a security is, and not the legislation from which his agency derives its power, is beyond comprehension.It’s time for US elected officials to take notice.
“When you’re acting like an autocrat running a bloated $2.2 billion agency, why would you 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 reaction to Gensler’s claim that current securities laws “cover most of the activity that is happening in the crypto markets.” The SEC chief said he said, “If Congress were to act, while I don’t think we need those authorities, not to inadvertently undermine by definitions of what’s in or out, or in essence allowing conflicts that we don’t allow .” Gensler warned:
I believe that many of the legislative vehicles, if adopted, would harm securities competition.
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 reaching out to discuss how to comply with the SEC.However, Garlinghouse has accused the securities watchdog of holding meetings with crypto firms primarily for the purpose of generating leads for its enforcement division.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.
Nasdaq-listed crypto exchange Coinbase recently received a Wells notice from the SEC regarding potential securities law violations.The company noted in its response: “The SEC will not allow crypto companies to ‘come in and register’; we tried.” Meanwhile, Gensler has repeatedly expressed the view that all crypto tokens other than bitcoin are considered securities.
What do you think about Gensler trying to dictate what a security is? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Exemption from liability: This article is for informational purposes only.
It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company.Bitcoin.com does not provide investment, tax, legal or accounting advice.Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article..
