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Ripple CEO Slams SEC Chair Gensler Over Regulatory Tactics

source-logo  cryptoglobe.com 21 September 2023 11:04, UTC

Brad Garlinghouse, the CEO of FinTech firm Ripple Labs, has openly criticized the U.S. Securities and Exchange Commission (SEC) and its Chairman, Gary Gensler. While speaking at Messari’s Mainnet 2023 event (September 20 – 22, 2023, New York City), Garlinghouse labeled Gensler as a bully, accusing him of prioritizing power and politics over effective regulation.

The CEO’s comments were widely disseminated by Jeff Roberts, Crypto Editor at Fortune, via a post on micro-blogging platform X (formerly known as Twitter):

“You have to stand up to a bully … he’s pursuing power, he’s pursuing politics. Not sound policy.”

Ripple CEO on SEC Chair. He’s not wrong

Also notable that Gensler has led one-time crypto foes @twobitidiot and @bgarlinghouse to become allies pic.twitter.com/GS2j1YDeP0

— Jeff Roberts (@jeffjohnroberts) September 20, 2023

Garlinghouse’s remarks come in the wake of a July 13th court decision in the SEC vs. Ripple case, where he stated that the SEC had failed in its objectives. He further emphasized that the court’s ruling had effectively dismantled Gensler’s argument that most crypto assets, including XRP, should be classified as securities.

Garlinghouse said:

Everything the SEC cares about, they lost… A freight train was driven through Gensler’s arguments that these are all securities.

Ripple's @bgarlinghouse comes out swinging:

"Everything the SEC cares about, they lost… A freight train was driven through Gensler's arguments that these are all securities." pic.twitter.com/eBKnBYxW2b

— Messari (@MessariCrypto) September 20, 2023

In a recent interview with Bloomberg reporter Annabelle Droulers at TOKEN2049 in Singapore, Garlinghouse discussed various issues, including the company’s legal battle with the SEC, its global expansion plans, and the overall state of the cryptocurrency industry. Garlinghouse expressed disappointment with the SEC’s unwillingness to work collaboratively with the crypto sector, contrasting this with more proactive stances in Singapore, Hong Kong, the U.K., and Dubai. He criticized SEC Chair Gary Gensler, saying, “Gary Gensler is a hammer and everything looks like a nail.”

Despite spending over $100 million in legal fees defending against the SEC’s claims, Garlinghouse remains hopeful, especially since the judge in their case has stated that XRP is not a security. He also revealed that 80% of Ripple’s new hires this year will be based outside the U.S., citing the country’s lagging position in the global crypto race. However, he believes that changes in political leadership and potential legislative action could improve the situation.

Garlinghouse emphasized that his main issue with regulations is not their strictness but their ambiguity. He revealed that Ripple has received preliminary approval for a major payments institution license in Singapore and has applied for one in Dubai. He accused the SEC of sowing confusion and expressed optimism about the U.S. appellate court system, citing a recent court decision against the SEC involving Grayscale as a positive sign for Ripple.

Featured Image via Midjourney