Ripple CEO Brad Garlinghouse Recently expressed his disapproval of the new Chairman of the U.S. Securities and Exchange Commission (SEC) Gary Gensler, who stated that it is his duty to decide which crypto tokens are securities.
Ripple Exec Criticizes SEC Chief Gensler on Crypto Security Classification
The CEO of Ripple Labs, Brad Garlinghouse, took to Twitter on Thursday to voice his discontent with SEC Chairman Gary Gensler’s stance on token security classification. Garlinghouse Tweeted:
It’s beyond comprehension for the Chair of the SEC to claim that he has the power to dictate which crypto tokens qualify as securities. Elected officials in the United States should take notice of this.
Garlinghouse went on to criticize Gensler’s lack of clarity on the issue, saying: “When you act like an autocrat in charge of a bloated $2.2 billion agency, why would you want to provide clarity on what’s ‘in or out’? Ambiguity masquerades as power in the absence of clear jurisdiction.”
This comes as Ripple Labs is currently embroiled in a legal battle with the SEC. The securities regulator has accused the company of selling XRP as an unregistered security, something that Ripple and Garlinghouse have denied.
Gensler has previously urged crypto companies to come in and discuss compliance with the SEC. However, Garlinghouse has accused the regulator of using these meetings solely for the purpose of collecting evidence for enforcement actions. There have been numerous gripes from crypto firms about the lack of clear guidance from the SEC, making it difficult to comply.
Recently, Coinbase, the Nasdaq-listed crypto exchange, received a Wells Notice from the SEC concerning possible violations of securities law. Coinbase responded by saying, “The SEC will not let crypto companies ‘come in and register’ — we tried.” Gensler, however, has consistently highlighted that all tokens, except bitcoin, are securities.
What What are your thoughts on Gensler’s stance? Let us know your opinion in the comments below.
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