Brad Garlinghouse, the chief executive officer of Ripple Labs, has called on lawmakers in the United States to look into assertive statements made by Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), about the American crypto industry.
Garlinghouse’s comments come as Gensler told a House Appropriations Committee in a recent hearing that there is no need for additional legislation for crypto assets, as already existing securities laws are sufficient for regulating the sector.
Gensler’s Assertions are “Beyond Comprehension”
In a tweet, the Ripple CEO insisted that the SEC chair’s assertions are beyond comprehension. Urging elected officials to notice Gensler’s actions, Garlinghouse pointed out that the SEC is subject to the legislation as the agency derives its power from there.
Gensler’s belief that the SEC can determine which digital assets are securities is seen in his behavior as he has taken enforcement actions against several crypto firms in the past few months.
At the hearing, the SEC chair noted that although Congress could act to provide clearer legislation for the crypto sector, the agency did not need additional authorities to determine which assets were securities or not. He insisted that the SEC is in charge of defining securities and not legislation.
In contrast, Garlinghouse believes crypto should be regulated by legislation and not from the SEC’s perspective.
“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 U.S. to take notice,” the Ripple boss stated.
An “Autocrat” Running a Bloated Agency
Garlinghouse further accused Gensler of behaving like an autocrat. The Ripple CEO insisted that the SEC chairman felt he did not need regulatory clarity because he ran a bloated agency.
“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,” Garlinghouse said.
Meanwhile, the SEC and Ripple have been in a two-year-long legal battle over securities law violations. The agency sued Ripple in 2020 for offering unregistered securities by selling XRP tokens. The court is expected to give its verdict on the case before the end of the year.
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