Brad Garlinghouse, the Chief Executive Officer of Ripple Labs Inc, a blockchain payments company, has questioned the lack of clarity in Gary Gensler, the Chairman of the US Securities and Exchange Commission (SEC) remarks,’s at his Senate banking committee hearing.
With players in the cryptocurrency ecosystem clamoring for clear laws to regulate the young industry for years, entrepreneurs and watchdogs have frequently collided on this topic. But, according to Gensler’s prepared speech for the hearing, the SEC chairman wants crypto firms to come in and discuss their plans with the commission.
Garlinghouse noted the incongruent statement made by Gensler throughout the hearing. The Chairman of the Securities and Exchange Commission stated that the securities regulations in the United States are sufficiently clear. He contradicted himself, though, by stating that Congress needed to rewrite the legislation more explicitly. Garlinghouse pointed out the inconsistency in reaction to a Bloomberg article in which Senator Pat Toomey chastised the market regulator for being too severe on cryptocurrency.
Ripple is probably one of the most troubled companies due to the market laws regulating the crypto ecosystem’s lack of legal clarity. Ripple and the SEC have been involved in a legal battle over the sale of XRP coins as unregistered securities. The blockchain company claimed that the regulations governing which assets are securities and which are commodities are ambiguous. It has pressed the SEC to make this distinction in the past.
Bitcoin (BTC) and Ethereum (ETH) are considered non-securities in the United States, whereas XRP is. Beyond the Ripple case, more crypto market participants want the SEC to fill up the holes in its oversight so that financial innovation may flourish across the board.