The CEO of Ripple, Brad Garlinghouse, has urged US legislators to address recent statements made by SEC Chairman Gary Gensler, in which he inferred that the current securities laws are sufficient for regulating the cryptocurrency market.
Given Gensler’s view that the SEC can randomly decide which digital assets are stocks, Garlinghouse’s remarks rebuttal to Gensler’s argument that legislation is redundant.
The SEC chairman said at a meeting before the House Appropriations Committee that existing securities rules cover most of what goes on in the cryptocurrency marketplaces. He added that Congress could act to provide additional clarification, but he believes that other authorities are optional.
The head of Ripple thinks the SEC chair’s opinion should be independent of such important choices rather than the law.
In a tweet, Garlinghouse voiced his concern, stating that it is “incomprehensible” for the SEC chairman to assert that he determines what constitutes security rather than relying on the legislation from which his agency derives its authority.
Garlinghouse accused Gensler of behaving autocratically, implying that the SEC’s authority is derived from ambiguity due to the lack of distinct jurisdiction.
As the SEC lawsuit against Ripple continues, the debate over the appropriate regulatory framework for cryptocurrencies rages, prompting industry leaders to seek clarification from elected officials.
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