The CEO of Ripple (Brad Garlinghouse) has scolded the Chairman of the Securities and Exchange Commission (SEC) – Gary Gensler – for thinking he can decide which Crypto tokens are a kind of security without following their own rules. He is telling elected officials to pay attention to this issue.
“Garlinghouse Warns against U
Brad Garlinghouse, the leader of Ripple Labs, has spoken against U.S. Securities and Exchange Commission chairman Gary Gensler for saying what kinds of crypto tokens count as something you can buy or sell (securities). He tweeted to express his opinion – that it’s wrong for one person to decide which tokens are securities without consulting the law – and encouraged elected officials to take action.
Garlinghouse warned that when someone is trying to control a really expensive government agency, they don’t like to make it clear what should and shouldn’t be done. Without making things clear, this person can pretend to have more power than they actually do.
The Ripple executive responded to Gensler’s statement that current security laws mostly cover the activities performed in crypto markets. Gensler said that we don’t necessarily need extra powers, as Congress might unintentionally create problems by setting boundaries for what is allowed and not allowed. He warned that this could also cause conflicts between different parties.
In December 2020, the SEC (Securities and Exchanges Commission) sued Ripple, its CEO Brad Garlinghouse, and co-founder Chris Larsen. The reason for this was that they believe that XRP is a security. Ripple and Garlinghouse don’t agree with this idea. I think that if some laws get passed, it could cause damage to the way securities work.
Gensler is encouraging cryptocurrency exchanges and lending platforms to meet with the SEC and follow their rules. However, Garlinghouse believes that the SEC has been inviting crypto companies to meetings just so they can use them for investigations. Companies in this space are having trouble understanding what regulations they need to follow, making it hard for them to stay compliant.
Recently, the crypto exchange Coinbase, which is listed on Nasdaq, got a ‘Wells notice’ from the SEC because they might have broken securities law. In their response they said that the SEC will not let companies related to crypto register – and they tried it. Gary Gensler believes that all crypto tokens (except bitcoin) are considered as securities.
What do you feel about Gensler’s opinion? Please comment your thoughts below.
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