In a surprising turn of events, Ripple CEO has accused the Chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler of being hypocritical in his attempt to regulate cryptocurrencies.
Garlinghouse Criticizes SEC Chair
Bradley Kent Garlinghouse, Chief Executive Officer of Ripple, the network behind the XRP token, has recently taken to X (formerly Twitter) to publicly criticize Gensler for his recent comments about the crypto industry.
In the post, Garlinghouse openly labeled Gensler, a hypocrite, accusing the SEC Chairman of being involved in unverified fraudulent activities.
“Stunning hypocrisy from the person who cozied up to the biggest fraud in recent memory. Gensler is a political liability whose actions have decimated consumers and destroyed the integrity of the SEC while remaining buddy-buddy with Wall Street,” Garlinghouse stated.
Garlinghouse’s condemnation comes as a response to a recent X post published by Gensler where the SEC Chair openly lamented about a high degree of fraud and bad actors in the crypto industry.
“There is a lot of noncompliance in the crypto space. It undermines confidence when so many people have been hurt and all they can do is stand in line in the bankruptcy court. Further, this can make it hard for the good faith actors to compete,” Gensler stated.
The accusations from the Ripple CEO also come amidst the ongoing legal battle between the SEC and Ripple.
As per a recent court ruling by Judge Analisa Torres in early November, the remedies-related discovery process between the SEC and Ripple is scheduled to be completed by April 12, 2024. The completion of this phase is anticipated to bring more clarity to the lawsuit filed against Ripple and possibly a final settlement of the three-year-long legal dispute.
Ripple Community Reacts To Gensler’s Crypto Remarks
The edgy relationship between the CEO of Ripple and the SEC Chair was seen to start around the time the US SEC filed a lawsuit against Ripple in December 2020.
The relationship has become increasingly hostile and could be attributed to the SEC’s recent enforcement actions on several cryptocurrency exchanges and companies. As a result, Garlinghouse stated previously that the SEC had lost sight of its fundamental mission and role to protect investors.
Many crypto enthusiasts commenting on Garlinghouse’s post which criticized Gensler, have expressed their disapproval regarding the SEC Chair’s approach towards cryptocurrencies.
A crypto community member stated that Gensler and the SEC were the largest threat to crypto innovation and pioneering companies like Ripple. Another member has also labeled the SEC Chair a hypocrite, stating that Gensler was hindering financial evolution in the US due to his seemingly negative stance on cryptocurrencies.
“We know Gary Gensler is a hypocrite, he’s only protecting the big Financial Institutions and stifling innovation in the USA. European and Asian countries are adopting the Technology,” the community member stated.