In a recent interview with CNBC, Ripple CEO Brad Garlinghouse criticized SEC Chair Gary Gensler for his approach to regulating the crypto industry. Garlinghouse argued that Gensler is trying to impose a one-size-fits-all framework that treats all crypto tokens as securities, regardless of their functionality and use cases.
Garlinghouse said that this approach is inconsistent with the SEC’s guidance and harmful to innovation and consumer choice. He pointed out that Ripple’s native token, XRP, is not a security but a utility token that enables fast and cheap cross-border payments. He also claimed that Ripple has been transparent and cooperative with the SEC but has not received any clarity or guidance from the regulator.
Garlinghouse added that he hopes to resolve the ongoing lawsuit with the SEC, which accuses Ripple of selling unregistered securities in the form of XRP. He said that Ripple is willing to work with the SEC to find common ground and establish a clear regulatory framework for the crypto industry. He also expressed his confidence that Ripple will prevail in court and prove that XRP is not a security.
Garlinghouse’s comments come amid growing tension between the SEC and the crypto industry. Gensler has recently stated that he believes most crypto tokens are securities and fall under the SEC’s jurisdiction. He has also called for more congressional authority and resources to regulate crypto space.
However, many crypto advocates and lawmakers have rebelled against Gensler’s stance, arguing that it is overreaching and stifling innovation.
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