Ripple CEO Takes Aim at SEC Chair After US House Approves Cryptocurrency Bill
Ripple CEO Brad Garlinghouse has directed criticism towards SEC Chair Gary Gensler following the approval of the FIT21 bill by the US House. The bill, designed to establish a legal framework for cryptocurrencies in the US, garnered support from 71 Democrats and could potentially transfer regulatory authority from the SEC to the Commodity Futures Trading Commission. Ripple's top lawyer, Stuart Alderoty, has stressed the significance of bipartisan collaboration in cryptocurrency-related issues. The bill's progression now hinges on the Senate's decision.
Key Takeaways
- Ripple CEO Brad Garlinghouse takes jab at SEC Chair Gary Gensler after approval of Financial Innovation and Technology for the 21st Century Act (FIT21) by US House of Representatives.
- Garlinghouse's statement about Gensler becoming a political liability has aged well, according to him.
- FIT21 bill aims to create a legal framework for cryptocurrencies in the US, a major win for the industry.
- SEC Chair Gensler aggressively opposed the bill, claiming that many players in the crypto industry don't play by the rules.
- Bipartisan cooperation is crucial for cryptocurrencies, emphasized Ripple's top lawyer, Stuart Alderoty.
Analysis
The approval of FIT21 by the House, shifting regulatory power from the SEC to the CFTC, has vindicated Ripple CEO Brad Garlinghouse's criticism of SEC Chair Gary Gensler. This development could benefit cryptocurrency companies like Ripple, which have been at odds with the SEC. In the short term, the bill's future in the Senate remains uncertain. If passed, it could enhance bipartisan cooperation in crypto regulation, reducing legal uncertainty for businesses in the sector. However, Gensler's opposition suggests potential resistance in the Senate, which could prolong the status quo. Ultimately, this development could set a precedent for future crypto regulatory decisions in the US.
Did You Know?
- Ripple CEO Brad Garlinghouse and SEC Chair Gary Gensler: These individuals are central figures in the ongoing clash between the cryptocurrency industry and regulatory bodies in the US. Garlinghouse leads Ripple, a blockchain-based payments company, while Gensler chairs the Securities and Exchange Commission (SEC). Their public disputes underscore differing viewpoints on crypto regulation.
- Financial Innovation and Technology for the 21st Century Act (FIT21): Recently approved by the US House of Representatives, this bill aims to establish a legal framework for cryptocurrencies. The bill's potential to shift regulatory power from the SEC to the Commodity Futures Trading Commission (CFTC) carries significant implications for the crypto industry.
- Bipartisan cooperation in cryptocurrency matters: This concept emphasizes the need for collaborative efforts across political parties to address regulatory challenges in the cryptocurrency industry. Ripple's Stuart Alderoty highlights the importance of such cooperation, particularly as the fate of the FIT21 bill rests with the Senate, requiring support from both Democratic and Republican factions.