Ripple CEO Brad Garlinghouse has criticised US Securities and Exchange Commission (SEC) Chairman Gary Gensler for asserting his own authority over which crypto tokens are securities, rather than relying on existing legislation. Garlinghouse argued that Gensler’s claims went “beyond comprehension”, adding that it was time for elected officials to take note. Ripple has been engaged in a dispute with the SEC since the regulator filed a lawsuit against the firm in December 2020, claiming XRP is a security. Ripple and Garlinghouse have consistently argued that is not the case.
This article originally appeared on news.bitcoin.com
The Chairman of the Securities and Exchange Commission (SEC), Gary Gensler, has been receiving flak from the CEO of Ripple, Brad Garlinghouse, for dictating which crypto tokens are securities.
Garlinghouse recently took to Twitter to criticize Gensler for his approach to regulating cryptocurrency, stating that it is wrong for the SEC to be determining what is and isn’t a security in the crypto space. He further added that the SEC should focus on protecting investors and ensuring a level playing field for all market participants, rather than dictating what is considered a security.
The criticism comes amidst an ongoing lawsuit between the SEC and Ripple, which has been brewing for some time now. The SEC alleges that Ripple sold unregistered securities in the form of XRP tokens to investors, while Ripple maintains that XRP is, in fact, a cryptocurrency and not a security.
Garlinghouse’s comments echo the sentiments of many in the cryptocurrency industry, who believe that the SEC’s approach to regulating crypto is too heavy-handed and stifles innovation. Many argue that the industry needs clear guidelines on what constitutes a security in the crypto space, but that the SEC’s current approach is overly broad and confusing.
The debate around the regulatory status of cryptocurrencies and tokens has been ongoing for some time now, but it has gained greater attention in recent months due to the increased adoption of crypto by mainstream investors and corporations. While some believe that clear regulations are necessary to protect investors and prevent fraud, others argue that excessive regulation will stifle innovation and hold back the growth of the industry.
Regardless of the outcome of the Ripple lawsuit, it is clear that the issue of crypto regulation is far from resolved. As the industry continues to evolve and mature, it will be interesting to see how regulators balance the need to protect investors with the desire to foster innovation and growth in the space.
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