SNEAK PEEK
- Ripple CEO Criticizes SEC Chair for Crypto Control.
- Elected officials should pay attention to the matter: Brad Garlinghouse.
- SEC’s ambiguity was a form of power that allowed the agency to target certain crypto assets selectively.
Brad Garlinghouse, the CEO of Ripple Labs, has criticized the U.S. Securities and Exchange Commission (SEC) chairman, Gary Gensler, for his stance on which crypto tokens are considered securities. In a tweet on Thursday, Garlinghouse stated that it was “beyond comprehension” for Gensler to assert his power in deciding which tokens fall under the security label. He further urged elected officials in the United States to pay attention to the matter.
For the Chair of the SEC to assert that he dictates what is a security – and not the legislation from which his agency derives its power – is beyond comprehension. It’s time for elected officials in the US to take notice. https://t.co/kvat6ixUdS
— Brad Garlinghouse (@bgarlinghouse) March 30, 2023
Garlinghouse’s tweet amidst ongoing tension between Ripple Labs and the SEC, which recently filed a lawsuit against the company alleging that it conducted a $1.3 billion unregistered securities offering. Ripple has denied the allegations and accused the SEC of creating confusion in the crypto market by selectively targeting certain cryptocurrencies as securities. The case is still ongoing, with both parties presenting arguments in court.
Garlinghouse’s criticism of Gensler reportedly highlights the ongoing debate around the classification of crypto assets, with regulators worldwide grappling with regulating this emerging sector. It remains to be seen whether Garlinghouse’s call for elected officials to take notice will result in any action or changes in policy regarding crypto regulation in the United States.
In a separate statement, Garlinghouse accused the agency of behaving like an autocrat and called attention to the lack of clear jurisdiction in the regulatory framework.
When you behave like an autocrat running a $2.2B bloated agency, why would you ever want to provide clarity about what’s “in or out”?
Without clear jurisdiction, ambiguity masquerades as power.
Read that again.
— Brad Garlinghouse (@bgarlinghouse) March 30, 2023
He also suggested that the SEC’s ambiguity was a form of power that allowed the agency to selectively target certain crypto assets while leaving others in regulatory limbo.
Garlinghouse’s comments reflect the frustration felt by many in the crypto industry, who have called for greater clarity and consistency in regulatory oversight, according to experts. With clear guidelines, businesses and investors can navigate a complex and often confusing landscape of regulations and enforcement actions.
