Brad Garlinghouse is the CEO of Ripple Labs. He has criticized Gary Gensler (chairman of the U.S Securities and Exchange Commission) for dictating which cryptocurrency tokens are securities. Garlinghouse tweeted on Thursday:
It is absurd for the Chair of SEC to claim that he decides what security is, and not the legislation from whose authority he derives it. It is time for elected officials to pay attention in the United States.
“When you act like an autocrat leading a $2.2B bloated government, why would anyone want to give clarity on what’s ‘in’ or out? Garlinghouse warned that ambiguity can masquerade as power if there is no clear jurisdiction.
This statement was made by Ripple’s chief executive in response to Gensler’s assertion that current securities laws “cover most of what’s happening in crypto markets.” According to the SEC chief, Gensler warned: “If Congress were to act, although I don’t believe we need these authorities,” he stated that he didn’t think they needed them. He also said that if Congress did act, he would not allow for inadvertently to undermine crypto-legislation by defining what is in or out or allowing for conflicts we don’t allow. Gensler warned:
Many of these legislative instruments, if they are adopted, would undermine securities remit.
The company has been involved in a legal dispute since the SEC filed a suit against Ripple and Garlinghouse in December 2020. While the SEC claimed XRP was a security, Ripple and Garlinghouse insist that it isn’t.
Gensler repeatedly stressed the importance of cryptocurrency exchanges as well as lending platforms meeting with Gensler to discuss compliance with the SEC. Garlinghouse, however, has accused Gensler of meeting with crypto companies solely to generate leads for its Enforcement Division. It has been widely complained that the SEC doesn’t provide clear regulations making it difficult to ensure compliance by companies operating in the crypto space.
Recent Wells notice was issued by the SEC to Coinbase, a crypto exchange listed on the Nasdaq. It concerns potential securities law violations. In its response, the company stated that the SEC would not allow crypto companies to ‘come into and register’. We tried. Gensler repeatedly stated that all crypto tokens other than bitcoin are securities.