Ripple CEO Takes Aim at SEC Chair Gary Gensler: What’s the Latest Battle in the Cryptocurrency World?

At the World Economic Forum in Davos, Switzerland, Ripple CEO Brad Garlinghouse criticized United States Securities and Exchange Commission Chair (SEC) Gary Gensler during his appearance.

According to a report, Ripple CEO Brad Garlinghouse thinks that Gensler is a political liability.

By Julia Smith

Last updated: January 16, 2024 04:10 EST | 2 min read

Ripple CEO Brad Garlinghouse didn’t hold back when he took shots at the United States Securities and Exchange Commission (SEC) Chair, Gary Gensler, during an appearance at the World Economic Forum in Davos, Switzerland.

A New Chair of the SEC?

“I do think the chair of the SEC, Gary Gensler, is a political liability in the United States,” Garlinghouse told CNBC’s Arjun Kharpal. “And I think he’s not acting in the interests of the citizenry, he’s not acting in the interests of the long-term growth of the economy, and I don’t understand it.”

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Garlinghouse further stated, “I think at some point there will be a new chair of the SEC, and I think that will be a good thing for the American people.”

Spot Bitcoin ETF Approval

Garlinghouse’s comments come following the SEC’s recent approval of several spot bitcoin ETFs, which marks a significant milestone in the increased mainstream adoption of cryptocurrencies in the U.S. However, the SEC faced scrutiny as they fell victim to a hack just before their mass ETF approval, resulting in a false post claiming the SEC had already approved numerous spot bitcoin ETFs.

“The @SECGov twitter account was compromised, and an unauthorized tweet was posted to their account on January 9th,” stated Gensler. “The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.”

Members of the cryptocurrency community expressed their frustrations on social media, including Gemini co-founder Tyler Winklevoss, who wrote, “Today, the @SECGov continued its quest to harm US investors. Time for the SEC to hold the SEC accountable!” Garlinghouse himself joined in, stating, “the SEC should be investigating itself for multiple things.”

The Federal Bureau of Investigations has announced that they are looking into the hack.

The SEC and Ripple Face-Off

Meanwhile, Ripple is currently embroiled in a lawsuit from the SEC, alleging that the company and its executive sold XRP as unregistered securities. While charges against Garlinghouse were dropped last October, the SEC has filed a motion asking Ripple to disclose its financial statements for 2022 and 2023, as well as their post-complaint contracts governing institutional sales.

These recent comments from Garlinghouse are not the first time he has criticized the SEC’s regulatory approach. He stated last year, “So I think at some point, the SEC has to step back and realize that their approach of regulation through enforcement, let’s just bring lawsuits, that has to break.”

Q&A: What Else Are Readers Curious About?

Q: What is the significance of the SEC’s approval of spot bitcoin ETFs?

A: The SEC’s approval of spot bitcoin ETFs is a major milestone in the mainstream adoption of cryptocurrencies in the U.S. It allows investors to gain exposure to bitcoin without directly owning the underlying asset. This approval provides legitimacy to the cryptocurrency market and opens up new investment opportunities for individuals and institutional investors.

Q: What are the implications of the SEC’s hack and the false post about approved spot bitcoin ETFs?

A: The hack of the SEC’s twitter account and the false post about the approval of spot bitcoin ETFs has caused confusion and frustration in the cryptocurrency community. It highlights the vulnerabilities in the regulatory space and raises questions about the SEC’s ability to protect investors and maintain the integrity of the market. The incident also underscores the need for strong cybersecurity measures and the importance of verifying information from official sources.

The Future of the SEC and Ripple

The clash between Ripple and the SEC, along with Garlinghouse’s criticism of SEC Chair Gary Gensler, highlights the ongoing tension between the cryptocurrency industry and regulatory authorities. With the increasing mainstream adoption of cryptocurrencies, it is crucial for regulators like the SEC to strike a balance between protecting investors and fostering innovation.

Moving forward, it will be interesting to see how the SEC’s approach to regulation evolves and whether they can find common ground with companies like Ripple. As the cryptocurrency market continues to mature, clear and transparent regulations will be necessary to ensure its long-term growth and stability.

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References:

1. SEC Chair Gary Gensler tells CNBC the Commission is taking a new look at spot bitcoin ETFs

2. Bitcoin rebounds above $44K as spot BTC ETF approval looks increasingly likely

3. XRP price set to spike as Ripple enters another $1.5 trillion industry

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