Brad Garlinghouse, the CEO of Ripple, has called on US lawmakers to address recent comments made by Securities and Exchange Commission (SEC) Chair Gary Gensler. Gensler stated that the existing securities laws are sufficient for regulating the cryptocurrency market, implying that the SEC can determine which digital assets qualify as securities without the need for additional legislation.
During a House Appropriations Committee hearing, Gensler suggested that most of the activity occurring within the crypto markets falls under the scope of current securities laws. While Congress could clarify the regulatory framework further, Gensler does not believe additional authorities are necessary.
Garlinghouse, in response, expressed his concern on Twitter, stating that the SEC Chair’s claim that he dictates what constitutes a security is “beyond comprehension.” Garlinghouse argued that such decisions should be based on legislation, rather than the personal viewpoint of the SEC Chair.
Garlinghouse accused Gensler of acting like an autocrat, taking advantage of the lack of clear jurisdiction to use ambiguity as a source of power. As the SEC lawsuit against Ripple continues, the debate over the appropriate regulatory framework for cryptocurrencies remains unresolved. Industry leaders are seeking clarity from elected officials on this matter.
The controversy highlights the need for clear and comprehensive regulatory guidelines for cryptocurrencies in the United States. As the market continues to evolve and grow, it is crucial that lawmakers and regulatory bodies work together to create a regulatory framework that promotes innovation while protecting investors and consumers.
The Ripple, XRP, SEC case begun in December 2020 and it seems it will have an end by 2023.
