Brad Garlinghouse, CEO of Ripple Labs, has called on US lawmakers to look into assertive statements by Securities and Exchange Commission (SEC) Chairman Gary Gensler about the US crypto industry.
At Garlinghouse 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 the already existing securities laws are sufficient to regulate the sector.
Gensler’s claims are ‘incomprehensible’
In a tweet, Ripple’s CEO insisted that the SEC Chairman’s claims are beyond belief. Urging elected officials to take notice of Gensler’s actions, Garlinghouse pointed out that the SEC is subject to the legislation because the agency derives its power from it.
Gensler’s belief that the SEC can determine which digital assets are securities is reflected in his demeanor, as he has taken enforcement action against several crypto companies in recent months.
During the hearing, the SEC Chairman noted that while Congress could act to provide clearer legislation for the crypto sector, the agency did not need additional authorities to determine which assets were titles or not. He insisted that the SEC is responsible for defining securities, not legislation.
In contrast, Garlinghouse believes crypto should be regulated by law, not from the perspective of the SEC.
“For the Chairman of the SEC to say that he dictates what a security is — not the legislation his agency derives its power from — is beyond belief. It’s time for elected American officials to take notice,” said the boss of Ripple.
An “autocrat” Running a bloated agency
Garlinghouse further accused Gensler of behaving like an autocrat. Ripple’s CEO insisted that the SEC Chairman felt he didn’t need regulatory clarity because he ran a bloated agency.
“When you’re behaving like an autocrat running a bloated $2.2 billion agency, why would you ever want to clarify what’s ‘in or out’? Without clear competence, ambiguity masquerades as power,” Garlinghouse said.
Meanwhile, the SEC and Ripple are embroiled in a two-year 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 deliver its verdict on the case before the end of the year.
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