The CEO of Ripple believes that crypto should be governed by legislation and not the SEC.
Ripple Labs CEO Brad Garlinghouse has urged American legislators to investigate recent offensive comments by SEC head Gary Gensler about the U.S. cryptocurrency business.
Garlinghouse’s remarks follow Gensler’s recent testimony before the House Appropriations Committee that there is no need for additional legislation to regulate crypto assets because existing securities laws are sufficient.
The CEO of Ripple stated in a tweet that the SEC chair’s claims are incomprehensible. Gensler has taken enforcement actions against several cryptocurrency firms in the past few months, demonstrating that he believes the SEC can discern which digital assets are securities.
During the hearing, the chair of the SEC stated that while Congress could act to provide more specific legislation for the crypto sector, the agency did not require the additional authority to determine which assets were securities and which were not. He insisted that the SEC, not legislation, defines securities.
Garlinghouse, on the other hand, believes that crypto should be governed by legislation, not the SEC. It’s incomprehensible that the SEC Chair would claim that he, and not the law from which his office gets its authority, determines what constitutes security. It is time for elected officials in the United States to take note,” stated the Ripple CEO.
Additionally, Garlinghouse accused Gensler of behaving autocratically. Meanwhile, the SEC and Ripple have been engaged in a two-year legal dispute over securities law violations. In 2020, the agency sued Ripple for offering unregistered securities through the sale of XRP tokens. The court is anticipated to decide on the case by the end of the year.
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