Ripple (XRP) CEO Brad Garlinghouse has urged US lawmakers to address recent statements by SEC Chairman Gary Gensler, which implied that current securities laws are sufficient to regulate the cryptocurrency market.
Ripple (XRP) CEO Garlinghouse Urges US Lawmakers to Address SEC Chairman's Claims
Garlinghouse's comments came in response to Gensler's belief that the SEC could determine which digital assets qualify as securities and that the legislation was unnecessary.
After a hearing in the House Appropriations Committee, the SEC chairman suggested that current securities laws cover most of the activity occurring in the crypto markets.
He added that while Congress may take action to provide further clarification, he does not believe additional powers are necessary.
The Ripple CEO claims that such decisions should be based on legislation rather than the personal point of view of the SEC Chairman.
For the Chair of the SEC to assert that he dictates what is a security – and not the legislation from which his agency derives its power – is beyond comprehension. It's time for elected officials in the US to take notice. https://t.co/kvat6ixUdS
— Brad Garlinghouse (@bgarlinghouse) March 30, 2023
In his tweet, Garlinghouse expressed his concern, stating that it was "incomprehensible" for the SEC boss to claim that his agency dictated what constitutes a security, rather than relying on the legislation from which it derives its power.
Garlinghouse accused Gensler of acting like an autocrat, arguing that the lack of clear jurisdiction allowed uncertainty to serve as a source of strength for the SEC.
As the SEC lawsuit against Ripple continues, the debate over the appropriate regulatory framework for cryptocurrencies remains unresolved, prompting industry leaders to seek clarification from elected officials.
*Not investment advice.