Ripple Co-founder Blames SEC Chair for Crypto Industry Setback
In an interview with Bloomberg Television, Ripple Labs’ co-founder Chris Larsen criticized SEC chair Gary Gensler for his aggressive approach towards the crypto industry. Larsen accused Gensler of bullying and stated that his actions have caused the US to lose its position in the blockchain industry to foreign competitors such as London, Dubai, and Singapore. Larsen also criticized the Biden administration for mishandling the nation’s crypto policy, leading to the industry being pushed offshore.
Larsen further expressed his disappointment in San Francisco losing its chance to become the blockchain capital of the world due to the hostile policies of the US government. He attributed this setback to the lack of clarity and enforcement tactics employed by Gensler. Larsen highlighted the success of London, Singapore, and Dubai as blockchain hubs, emphasizing the failure of the Biden government’s crypto policy.
In response to the SEC’s crackdown on crypto companies, there has been backlash from the industry and politicians like Ritchie Torres, who likened the SEC to an overzealous traffic cop on a crusade against the industry. Critics argue that Gensler’s regulation-by-enforcement strategy is stifling innovation and driving companies to relocate overseas. However, others believe that a crackdown is necessary to eliminate bad actors and establish a stronger foundation for future growth.
Ripple’s Legal Victory Against SEC
In recent legal battles, Ripple achieved a partial victory against the SEC, while Grayscale Investments also won a landmark ruling against the regulator. Larsen expressed hope that these outcomes signal the decline of the SEC’s regulation-by-enforcement policy and called for Congress to take the lead in shaping crypto policy.
Hot Take:
The clash between Ripple and the SEC highlights the challenges faced by the crypto industry in the US. While some argue for stricter regulation to ensure a secure and stable market, others believe that excessive enforcement stifles innovation and hampers the industry’s growth. Finding a balance between regulation and fostering innovation will be crucial for the future of cryptocurrencies and blockchain technology.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies.Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.
