Gensler’s Criticism and Ripple CEO’s Response
After Gary Gensler, the chairman of the SEC, criticized the cryptocurrency industry for noncompliance, Ripple CEO Brad Garlinghouse fired back. Garlinghouse accused Gensler of hypocrisy, referring to his alleged close ties with Sam Bankman-Fried, the CEO of collapsed exchange FTX. Garlinghouse called Gensler a “political liability” and accused him of decimating consumers and destroying the integrity of the SEC while being friendly with Wall Street.
Gensler’s Stance on Crypto Industry
Gensler had earlier highlighted the lack of compliance in the crypto sector. In an appearance on CNBC’s “Crypto World,” he mentioned widespread noncompliance with securities laws and other regulations related to anti-money laundering and public protection. He compared the crypto industry to the “Wild West” and expressed concerns about fraud and bad actors undermining confidence.
The Ripple-SEC Legal Battle
Ripple has been engaged in a legal battle with the SEC over allegations of illegal sales of XRP. However, a judge ruled that retail XRP sales did not constitute securities sales. Despite this apparent win, Ripple has incurred significant legal fees and faced consequences such as hiring outside the US and impacting XRP’s price and token holders.
Hot Take: Ripple CEO’s Critique of Gensler
Ripple CEO Brad Garlinghouse criticized SEC Chairman Gary Gensler for his remarks on noncompliance in the crypto industry. Garlinghouse accused Gensler of hypocrisy due to his alleged close ties with FTX CEO Sam Bankman-Fried. He labeled Gensler a “political liability” and claimed that his actions have harmed consumers and undermined the SEC’s integrity. The ongoing legal battle between Ripple and the SEC has resulted in significant costs for Ripple and affected the price of XRP. Garlinghouse’s response highlights the tension between the crypto industry and regulatory authorities.
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