Brad Garlinghouse, CEO of Ripple, has issued a stern warning to Gary Gensler, the chairman of the US Securities and Exchange Commission (SEC). His remarks, made on X (formerly Twitter), suggest that the SEC's crackdown on cryptocurrencies could have political consequences in the upcoming elections.
Debate at Roundtable
Garlinghouse made his comments during a roundtable discussion hosted by US Representative Ron Khanna. The event included notable figures like Mark Cuban, Anthony Scaramucci, and former CFTC chairman Chris Giancarlo. They focused on the need for clear and balanced crypto regulation in the US.
Bipartisan Views
US Congress members Kirsten Gillibrand and Joe Neguse, along with Coinbase's Chief Legal Officer Paul Grewal and Circle's Chief Strategy Officer Dante Disparte, also participated. Garlinghouse criticised Gensler, claiming the Democrats' hostility towards crypto is pushing Republicans to support the industry.
Garlinghouse's Stance
Garlinghouse didn't hold back, labelling Gensler as a "Luddite"—a term for those resistant to new technologies. He compared Gensler's scepticism to trying to stop the tide, arguing that opposing crypto only drives innovation and opportunity away from the US.
Historical Opposition
This isn't Garlinghouse's first criticism of Gensler's regulatory approach. Last year, he opposed Gensler's claim that existing frameworks suffice for crypto regulation. His outspoken critique echoes concerns from other industry leaders, such as Uniswap founder Hayden Adams, who warned that the Biden administration's stance on crypto could influence the upcoming elections.
Political Shifts
The debate on digital assets remains contentious within the Democratic Party, while the Republicans and their main candidate, Donald Trump, have been courting the crypto community, promising a more favourable regulatory environment. This evolving political landscape complicates the already controversial debate on how best to regulate the rapidly growing crypto industry in the US.
Industry Optimism
Kristin Smith, CEO of the Blockchain Association, described the roundtable as a "thoughtful step forward" for crypto in Washington, DC. She highlighted that crypto is a key issue for many voters and that the industry is maturing. Media reports post-event suggested the roundtable fostered productive discussions between the crypto industry and the Biden administration.
Cryptocurrency affects U.S. political elections
Sheila Warren, CEO of the Crypto Council for Innovation, mentioned that the meeting addressed key issues like de-banking and SEC's staff accounting bulletin on digital asset custody. She noted the Biden administration's advisors are keen to engage in the dialogue.
As the 2024 election approaches, the political landscape around crypto is becoming increasingly polarised. Former President Donald Trump has shown strong support for the industry, with the Republican Party following suit. Meanwhile, Biden's re-election campaign has reportedly sought guidance from the crypto industry on digital asset policy, indicating a significant shift in the administration's stance.
Cracking down on cryptocurrencies is not a wise move
Ripple CEO Brad Garlinghouse's warning to the SEC and highlights the political ramifications of the current regulatory stance on cryptocurrencies.
The SEC's rigid stance may stifle innovation and drive crypto enterprises abroad, undermining the US's position in the global financial technology landscape.
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