Ripple Co-Founder Criticizes SEC Chair Gensler in CNBC Interview
The conflict between Ripple Labs and the Securities and Exchange Commission (SEC) escalates as Ripple co-founder Chris Larsen criticizes SEC Chair Gary Gensler. In a recent CNBC interview, Larsen labeled Gensler the "worst public servant of all time", citing failed crypto policies in the U.S. and his support for Kamala Harris' campaign. Despite expressing disdain for both Gensler and FTC Chair Lina Khan, Larsen did not advocate for Gensler's removal.
.@Ripple Chairman Chris Larsen calls Gary Gensler
The worst public servant in U.S. history 🤣 pic.twitter.com/1jQyG5FbJN
— 𝗕𝗮𝗻𝗸XRP (@BankXRP) October 26, 2024
Ripple and the SEC have been engaged in legal disputes since late 2020, when Larsen and CEO Brad Garlinghouse were named in an SEC lawsuit accusing Ripple of selling unregistered securities via its XRP token, claiming violations of securities laws. Ripple contends that XRP should not be classified as a security, referencing prior SEC statements. By October 2023, Ripple sought to dismiss the charges, with Garlinghouse alleging that the SEC aimed to damage his reputation.
In July 2023, a judge determined that while Ripple's token sales to institutional investors violated securities regulations, its sales to retail customers on exchanges were compliant. Following this mixed ruling, the SEC filed an appeal, indicating ongoing legal action against Ripple’s leadership. Ripple responded with a cross-appeal, vowing to defend its position.
Gensler's regulatory approach to the crypto industry has disappointed many who anticipated a more supportive environment. Despite his background in technology and academia, including teaching a blockchain course at MIT, he has taken a strict regulatory stance, initiating actions against major exchanges such as Binance and Coinbase.
The ongoing legal battle between Ripple and the SEC represents a critical issue within the crypto sector, with significant backlash against Gensler’s policies. Brad Garlinghouse has criticized Gensler for stifling crypto innovation and failing to prevent the FTX collapse. As this dispute continues, it remains a central topic in the discussion surrounding crypto regulation in the U.S.