Brad Garlinghouse, the SEC Chairman Gensler, accused him of actions that are not beneficial to the citizens and restrict the long-term growth of the economy.
Brad Garlinghouse, CEO of Ripple, described SEC Chairman Gary Gensler as a ‘political burden’ due to his harsh approach to crypto regulations and ongoing legal processes.
Garlinghouse made these comments in an interview with CNBC at the World Economic Forum held in Davos on January 16. He also shared his views on possible ETFs for other cryptocurrencies and Ripple’s expectations for the year 2024.
Garlinghouse characterized Gensler’s approach as rigid and unchanging, even after the SEC approved the Bitcoin ETF. He accused Gensler of not acting in ‘the best interest of the citizens’ and hindering ‘the long-term growth of the economy.’
He criticized the rationale behind Gensler’s continual classification of most crypto assets as securities, asserting that it reflects a political agenda rather than an economic or protective purpose. Garlinghouse added:
“I think Gary Gensler is doing the same thing over and over again, expecting to win in court, despite repeated losses.”
Ripple’s CEO compared the U.S. regulatory framework with the more proactive approaches of the European Union and other regions. He stated that the U.S. is lagging behind in comprehensive crypto regulations and that this could have implications for global competitiveness.
He also anticipated possible legislative changes due to 2024 being an election year. He mentioned that the U.S. is not yet left behind and could remain competitive if the regulatory environment changes positively.
Garlinghouse agreed with Circle CEO Jeremy Allaire’s views, saying that regulations for stablecoins might soon come into effect.
ETFs and Market Expectations for 2024
The Ripple CEO also shared his thoughts on the general effects of the SEC’s decision to approve the Bitcoin ETF on future ETFs for other cryptocurrencies.
Garlinghouse noted that the significant increase in ETH‘s value following the approval of spot Bitcoin ETFs demonstrated the market’s interest in a broader range of ETF offerings. He said:
“I think it’s a certainty. I’m not going to put a horizon on the time, but I think there will be other ETFs for sure.”
He did not clarify whether Ripple would offer an ETF.
Garlinghouse turned the focus to Ripple, discussing the expansion into new markets and services, including payment solutions and custody services. He referred to Ripple’s solid financial situation as a foundation for future growth and potential acquisitions.
Presenting a positive outlook for the crypto market in 2024, Garlinghouse emphasized the company’s commitment to compliance and solving real customer problems. He also touched upon the changing dynamics of technology investments, indicating the market’s shift towards a more stable and mature environment.
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