Ripple CEO Brad Garlinghouse has urged lawmakers in the US to address recent statements made by the chairman of the SEC, Gary Gensler. He implied that the current securities laws are sufficient for regulating the cryptocurrency market.
The statements made by Garlinghouse are a rebuttal to Gensler’s position that the SEC can determine whether digital assets qualify as securities and, therefore, legislation is unnecessary.
The Chief Executive Officer of Ripple argues that such judgments should not be based on the personal views of the Chair of the Securities and Exchange Commission.
Garlinghouse voiced his concern in a tweet by stating that it is “beyond comprehension” for the head of the SEC to claim that he gets to dictate what constitutes security instead of relying on the legislation from which his agency derives its power. Garlinghouse’s tweet also stated that it is “beyond comprehension” that the SEC boss would make such a claim.
Garlinghouse said that the absence of apparent authority allowed ambiguity to function as a source of power for the SEC, and he accused Gensler of acting like a dictator.
Gensler held the belief that legislation is unnecessary. After a hearing held by the House Appropriations Committee, the SEC director, who is also pressing charges against Do Kwon, argued that existing securities rules cover most of the activity that is taking on inside the cryptocurrency markets. He said that even though Congress might take action to provide further clarity, he feels that additional powers are optional.
While the litigation brought by the SEC against Ripple proceeds, the discussion over the proper regulatory framework for cryptocurrencies still needs to be answered. This has prompted leaders in the sector to seek answers from political authorities.