Ripple CEO Slams SEC Chair Gensler For Dictating Which Crypto Tokens Are Securities
Ohhhhh boy, it is on! Ripple CEO Brad Garlinghouse has called out SEC Chair Gary Gensler and slammed him for dictating which crypto tokens are securities. Garlinghouse said Gensler was putting the SEC in “parental role” and called it “over-reaching”.
This week’s showdown is the latest in the dizzying circus we’ve all come to know and love as the crypto markets. This one is particularly interesting, though, as of late, because it directly involves the SEC.
Gensler has written a op-ed for the Wall Street Journal that lays out his view, which is that crypto’s are classified as securities and that the SEC should use its authority to oversee the industry. Gensler went as far to say that, in some cases, the SEC could step in and prohibit exchanges from trading certain digital assets that are deemed too risky by the SEC.
Garlinghouse took to Twitter to express his displeasure with Gensler’s opinion, writing, “Overreach & paternalism, much? SEC Commissioner Gensler is suggesting the SEC dictate which assets can and cannot trade on public crypto exchanges. Not only is this unduly restrictive, but it misses the mark on addressing the real risks in crypto.”
Garlinghouse didn’t stop there though. He continued his rant against Gensler’s sentiment saying:
- “The existing regulatory tools & expertise are more than enough to address security concerns, from AML/KYC to fraud and manipulation.”
- “The strong, thoughtful regulations in place for banks & broker-dealers and the few that exist for crypto exchanges & digital assets — all within the SEC’s jurisdiction — should continue to be the focus.”
Garlinghouse concludes his screed against Gensler with some biting sarcasm, saying “Raise your hand if you think the SEC should dictate which assets anyone can buy or sell… Anyone?”
It’s no secret that Garlinghouse and other crypto thought leaders have been at odds with the SEC over its alleged heavy-handed enforcement of crypto token regulations. This latest salvo just continues to highlight the divide between the SEC and the crypto industry.
Let this be a lesson to us all: never get on the bad side of Brad Garlinghouse, or else the SEC will have to respond to the wrath of the Ripple CEO.
Buckle Up, This Battle is Sure to Get Interesting
In all seriousness, this ongoing battle between the SEC and the crypto industry is sure to make for an interesting few months. No matter which side you’re on, it’s a good reminder of the importance of regulation in the crypto markets. The SEC is there to protect investors, and crypto token issuers and exchanges should take this opportunity to get compliant and keep their practices on the up-and-up.
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