• Ripple CEO Brad Garlinghouse called on US lawmakers to look into the crypto assertions made by SEC Chairman Gary Gensler.
• Gensler stated during a House Appropriations Committee hearing that no additional legislation was needed to regulate the crypto industry.
• Garlinghouse argued that Gensler’s statements were beyond comprehension and urged elected officials to take notice of his behavior.
Ripple CEO Calls for US Lawmakers to Investigate SEC Chair’s Crypto Assertions
Ripple Labs CEO Brad Garlinghouse has called on US lawmakers to investigate assertive statements made by Gary Gensler, chairman of the Securities and Exchange Commission (SEC), about the American crypto industry. The Ripple boss believes that crypto should be regulated by legislation and not from the perspective of the SEC.
During a recent House Appropriations Committee hearing, Gensler stated that existing securities laws are sufficient for regulating the crypto sector, negating any need for additional legislation. He further asserted that it is up to the SEC to determine which digital assets qualify as securities or not, backing up this claim with enforcement actions taken against several crypto firms in recent months.
In response, Garlinghouse tweeted that Genslers’ arguments are “beyond comprehension”, urging elected officials to take notice of his behavior. The Ripple CEO reminded everyone that though Congress could provide clearer legislation for cryptos, it is ultimately up to the SEC since its power derives from legal statutes.
The debate between Ripple Labs and SEC over XRP’s status as a security or not has been ongoing since late 2018 when the agency charged Ripple with conducting an unregistered security offering worth $1.3 billion dollars through its token sales activities. If successful in convincing legislators to investigate Gensler’s assertions, this could potentially have far-reaching implications for XRP’s future prospects as well as other cryptocurrency tokens in America depending on their classification under securities law according to their Howey test results.
It remains unclear what will happen next but one thing is certain: A resolution in favor of Ripple could potentially lead to regulatory clarity regarding cryptocurrency tokens across America and shape how they are treated under existing securities laws going forward into 2021 and beyond.