Ripple CEO Fires Back at SEC’s Gensler: ‘Absolute Nonsense’

Key Takeaways:

• Ripple CEO slammed SEC Chair Gensler's remarks on crypto executives going to jail.
• Garlinghouse accused Gensler of making “nonsense” claims while missing issues like FTX.
• SEC's harsh stance on crypto might cause Joe Biden to lose the 2024 election

Ripple CEO Brad Garlinghouse has responded to the crypto-skeptic head of the United States Securities and Exchange Commission (SEC), Gary Gensler, after the latter commented that all cryptocurrency executives are at risk of imprisonment while speaking at the Bloomberg Invest Summit on Tuesday.

On the @SECGov's stance on crypto, "The American public is not getting the proper disclosure that they are required to get by law, but they need." Chair @GaryGensler tells @BloombergTV’s @annmarie#BloombergInvest pic.twitter.com/cIufrZIpmI

— Bloomberg Live (@BloombergLive) June 25, 2024

During the event, the SEC's Gensler criticized crypto companies extensively, stating that the crypto industry is one where the prominent figures from a few years ago are either jailed, on the verge of imprisonment, or awaiting extradition. Gary Gensler added,

That’s the field right now where the public has really been harmed. And there’s significant non-compliance in the field.

As expected, this statement has sparked strong disapproval and opposition from cryptocurrency supporters. They assert that Chair Gary Gensler and the SEC have let down individual investors by failing to establish a regulatory framework for digital assets despite continuous requests from the industry and prominent market participants such as Coinbase, Blockchain Association, and Ripple.

The central argument is that the SEC has consistently enforced outdated securities laws dating back 78 years in a heavy-handed manner.

Enthusiasts view these laws as detrimental and obsolete regulations that do not apply to blockchain technology and digital assets.

Ripple CEO Garlinghouse Rebukes Gensler, Predicts Election Fallout

Ripple's CEO Brad Garlinghouse is among the blockchain leaders who did not react favorably to the comment. He criticized the American government official, stating that his persistent tough stance on crypto could ultimately lead to Joe Biden losing the upcoming election.

Absolute nonsense coming from @GaryGensler today.

And this slander about “all crypto execs going to jail” from the man who completely missed FTX (and actually cozied up to SBF), and wasn’t even invited to the DOJ announcement about Binance.

If he was really “working for the… https://t.co/c3ynB5Gncl

— Brad Garlinghouse (@bgarlinghouse) June 25, 2024

Moreover, Brad Garlinghouse dismissed Gensler's statement as “absolute nonsense,” asserting that the remark that every crypto leader is going to prison came from an individual who entirely disregarded FTX. This former prominent cryptocurrency exchange failed in November 2022 and had connections with SBF, the imprisoned FTX founder. 

He contended that,

If he was really ‘working for the American people’ as he says, he would have been fired a long time ago.

Biden vs. Trump on Cryptocurrency

Similarly, Mark Cuban, a famous businessman and crypto investor, once expressed a similar viewpoint to his 8.8 million followers on X in May this year, suggesting that if U.S. president Joe Biden loses, Gary Gensler and the SEC will be to blame.

If @joebiden loses, there is a good chance you will be able to thank @GaryGensler and the @NewYork_SEC
Crypto is a mainstay with younger and independent voters. Gensler HAS NOT PROTECTED A SINGLE INVESTOR AGAINST FRAUD

All he has done is make it nearly impossible for… https://t.co/uBKupxLhS9

— Mark Cuban (@mcuban) May 10, 2024

Related: Trump Leads Biden in Political Meme Coin Surge

Cuban argued that this sentiment contrasts with Donald Trump's stance. The former U.S. president has presented himself as a Bitcoin mining-friendly candidate, embracing the asset class and vowing to end Joe Biden's “war on crypto” to strengthen Florida's position as a crypto hub.

Cuban emphasized that crypto holds significant appeal for younger and independent voters. He criticized Gensler for failing to protect a single investor from fraud since initiating enforcement actions against various crypto companies over the years.