Ripple CEO Brad Garlinghouse has criticized the U.S. Securities and Exchange Commission (SEC) chairman Gary Gensler as a political liability to the Biden administration. Garlinghouse’s remarks follow developments from the FIT21 crypto bill passed by the US Congress.
The Ripple CEO noted that 71 Democrat legislators crossed the aisle to support the FIT21 crypto bill, demonstrating their disapproval of Gensler’s position concerning cryptocurrency. He highlighted a section of the bill addressing how to treat digital assets sold according to an investment contract. It read:
“A digital asset sold or transferred or intended to be sold or transferred under an investment contract is not and does not become a security as a result of being sold or otherwise transferred pursuant to that investment contract.”
Meanwhile, Garlinghouse highlighted the section of the bill he believes was influenced by Judge Torres’ decision in the case between the SEC and Ripple. In a July 2023 decision, the U.S. Judge ruled that XRP is not a security, giving Ripple a partial victory in the protracted litigation.
In December 2023, Garlinghouse called Gensler a “political liability whose actions have harmed consumers and undermined the integrity of the SEC while remaining buddy-buddy with Wall Street.” He called the SEC chair a hypocrite and accused him of being complicit with the biggest fraud in recent memory.
The U.S. House of Representatives passed the FIT21 crypto bill on Wednesday, May 22, 2024. Analysts consider the development a significant milestone in the cryptocurrency evolution and a substantial step toward regulatory clarity.
