The chief executive of Ripple Labs, Brad Garlinghouse, has requested that U.S. lawmakers swiftly address recent comments made by SEC chair Gary Gensler, who indicated that rules for the crypto market already exist — and no new rules need to be written.
Garlinghouse Opposes SEC’s Unfair Crypto Regulation
Securities law has been a major point of contention for the crypto intelligentsia and unintelligentsia since Gary Gensler affirmed that most digital assets — but not the largest and oldest bitcoin — fall under the securities definition.
Gensler testified at the House Appropriations Subcommittee on Financial Services and General Government on March 29, maintaining that existing securities laws are adequate for effectively policing crypto markets. The direct quote was: “The regulations actually already exist. They’re called the securities regulation, and so there are disclosure regulations for when somebody tries to raise money from the public.”
The SEC has continued to pursue what industry pundits consider a “regulation by enforcement” approach when it comes to crypto assets, cracking down on firms and projects that drive what the regulator believes are unregistered securities.
In a Thursday tweet, Ripple CEO Brad Garlinghouse stated that such decisions should be based on legislation, instead of merely on Gensler’s personal stance. Garlinghouse explained that it’s “beyond comprehension” for the SEC boss to assert that he dictates what qualifies as securities instead of relying on legislation from which his commission derives its power.
Garlinghouse further accused Gensler of behaving like an autocrat, suggesting he will never want to provide clarity on cryptocurrencies. The chief of the blockchain firm, currently entangled in a $1.3 billion lawsuit with the SEC, added that “without clear jurisdiction, ambiguity masquerades as power.”
Gensler has claimed that the SEC is stretched thin and needs a whopping $2.4 billion in funding for the top U.S. securities regulator to crack down on “misconduct” in the cryptocurrency industry.
The SEC has already targeted some of the most recognizable crypto brands this year, including Gemini, Genesis, Kraken, and most recently Coinbase and Justin Sun. It is to be noted that the agency escalated its enforcement actions following the abrupt and shocking bankruptcy of crypto exchange FTX last November.
Meanwhile, crypto observers are anxiously waiting for a decision from a federal judge to settle the longstanding legal feud between the SEC and Ripple.