Ripple CEO claims ‘political liability’ over Gary Gensler’s calls for cryptocurrency compliance
Ripple CEO Brad Garlinghouse has strongly criticized U.S. Securities and Exchange Commission (SEC) Gary Gensler’s recent message about regulatory violations in the cryptocurrency industry. Gensler’s statement follows recent efforts by U.S. Senator Elizabeth Warren to introduce legislation that would effectively ban Bitcoin in the United States.
Also Read: US SEC Reportedly Holds Call with Spot Bitcoin ETF Filers
Coinbase Petition Seeks Clarity About Cryptocurrencies
The SEC has been reluctant to change its enforcement-first approach to cryptocurrencies, but companies have been seeking clear guidance to maintain compliance. Interestingly, readers on Twitter responded with a community note stating that Coinbase, a US-based cryptocurrency exchange, has been working to clarify the SEC’s compliance guidelines for the past few years. The SEC said it had not taken a clear position on Gensler’s message and had relied on regulation by enforcement.
“There is a lot of non-compliance in the cryptocurrency industry. When too many people get hurt, their confidence is undermined. Moreover, this could make it difficult for well-intentioned actors to compete.”
The SEC did not respond to the petition filed by Coinbase in May 2023. The court required the commission to establish a clear regulatory framework for the cryptocurrency industry.
Ripple CEO: Amazing Hypocrisy
Garglinghouse noted that Gensler was involved in the largest fraud in recent history, clearly alluding to his meeting with former FTX CEO Sam Bankman-Fried. The Ripple CEO attached a video questioning a series of meetings between Gensler and Bankman-Fried during the FTX-related irregularities. The FTX collapse occurred in November 2022. At this time, thousands of individual investors lost millions of dollars worth of value. Garlinhouse said:
“Incredible hypocrisy from someone who recently pulled off one of the largest frauds in history. Gensler is a political liability whose actions have cost consumers lives and destroyed the integrity of the SEC.”
He added that Gensler continues to be friends with Wall Street heavyweights. Gensler worked at Goldman Sachs for 18 years, holding roles such as co-head of finance.
Also Read: Bitcoin Gains Legality for Contracts and Payments in Argentina
The post Ripple CEO Calls Gary Gensler a ‘Political Liability’ for Demanding Cryptocurrency Compliance appeared first on CoinGape.
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