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Ripple CEO Says WSJ Article Should Prompt U.S. Congress to Stop SEC Chairman's Methods of Crypto Regulation

Legal

thecryptobasic.com 08 July 2022 08:31, UTC
  
Reading time: ~2 m

Garlinghouse has slammed the SEC chairman’s method of regulating the crypto industry.

Brad Garlinghouse, Ripple’s CEO, has commented on an opinion piece written by the Wall Street Journal (WSJ), which slammed SEC Chairman Gary Gensler’s cryptocurrency approach as counter-productive. 

Ripple’s CEO shared an excerpt of the article: “Mr. Gensler’s blockade is counter-productive if he aims to protect investors.” 

According to Garlinghouse, the WSJ article is enough to prompt congressional action that would stop Mr. Gensler from continuing his “regulation by enforcement” approach in the nascent industry. 

However, Garlinghouse noted that if the U.S. Congress is not triggered by the WSJ opinion piece and moves to stop Mr. Gensler, then he is not sure what would motivate them to swing into action. 

“If that doesn’t call for Congressional action to stop Chair Gensler’s preferred method of regulation by enforcement, I’m not sure what does,” Garlinghouse tweeted. 

.@WSJopinion writes “Mr. Gensler’s blockade is counter-productive if his aim is to protect investors.”

If that doesn’t call for Congressional action to stop Chair Gensler’s preferred method of regulation by enforcement, I’m not sure what does…https://t.co/4mhxBEauN6

— Brad Garlinghouse (@bgarlinghouse) July 7, 2022

SEC Ignores Continuous Calls for Clear Crypto Regulations

The Ripple CEO’s comment echoes continuous outbursts from the crypto community about the methods the SEC uses to regulate the cryptocurrency industry. 

For years, the SEC has been urged to provide more transparent crypto regulations to guide the activities of the nascent industry. The SEC has maintained that its regulations on digital assets are clear, without giving any further guidelines. 

However, when crypto-related firms try to figure out these rules and offer products based on their interpretations of the SEC’s rules, the agency swings into action and charge them for violating its policies. 

Ripple-SEC Lawsuit

An example is the ongoing legal battle between Ripple and the SEC. Recall that in late 2020, the SEC charged Ripple and two of its executives, including Garlinghouse, for conducting an unregistered securities offering that saw it raise $1.3 billion in a 2013 Initial Coin Offering (ICO). 

Ripple noted that it hired the services of professionals to help ensure that its crypto sales do not violate U.S. securities laws. 

However, the SEC chose to slam a lawsuit against Ripple seven years later, despite efforts made by the company to ensure it does not get into the bad books of the agency. 

The lawsuit has lingered for more than a year. The case is expected to be concluded on or before March 31, 2023


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